Good Natured Products Inc V.GDNP.H

Bought deal

[atrician]

https://www.newswire.ca/news-releases/good-natured-products-inc-announces-15-million-bought-deal-offering-and-debt-retirement-811910391.html

[dileas48s]

Half as much as I thought and no warrants with this deal so I like that part. 

[psmith]

also debt conversion to equity price of financing is very good imo

[Zipolitemexico]

Nice. Another acquisition on the horizon. Lots of good opportunities in the pipeline. The net proceeds of the Offering are expected to be used by the Company for potential future acquisition, general corporate purposes, and working capital

[jermoguy]

Hi, thanks for sending this.  So in layman's terms, a bunch of underwriters bought a block of shares (12.5 mil)  for a discount @ $1.20 a share, with the option to buy more later.  As a result, GDNP gets a $15 million cash infusion.  And then they also paid down debt with BDC, which if memory serves me right, financed them a couple of years ago?  I am sure I have some

[FreddieMac]

In simple terms....  In a bought deal the company gets the money no matter what, as the underwriters have "bought" the shares and then it is up to them to re-sell them to investors (in other words, go get the stock off their books).   The underwriter takes the risk that they will not be able to re-sell this stock at the Issue Price.   In a private placement

[Bcminer11111111]

but there is share delusion