Q: Good morning from B.C.
I woke today to see that Richmont Mines announced a bought deal financing valued at 34 million (they are selling X# of shares at $4.00 a piece).
My take is that $4.00 is a great price for them to get (seems that financial institutions usually extract a price much lower than current market value when doing these), but am unsure what it means bigger picture. I think 5i generally doesn't like these sorts of events as it dilutes current shareholders, however I'd appreciate your thoughts on RIC specifically.
Is this a bullish event for RIC?
Thanks so much.
I woke today to see that Richmont Mines announced a bought deal financing valued at 34 million (they are selling X# of shares at $4.00 a piece).
My take is that $4.00 is a great price for them to get (seems that financial institutions usually extract a price much lower than current market value when doing these), but am unsure what it means bigger picture. I think 5i generally doesn't like these sorts of events as it dilutes current shareholders, however I'd appreciate your thoughts on RIC specifically.
Is this a bullish event for RIC?
Thanks so much.