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Win us with honest trifles

Argonaut Gold (AR.to) runs a bot deal

  • “Hey Otto, whatever makes you think a whole bunch of Canadian brokerages may have been front-running non-public material information on Argonaut Gold (AR.to) today?”
  • “Oooooh, just a gut feeling, yaknowz…”

After the closing bell today, this:

TORONTO, Feb. 14, 2022 (GLOBE NEWSWIRE) — Argonaut Gold Inc. (TSX: AR) (“Argonaut” or the “Company”) has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy on a bought deal basis by way of private placement, 3,400,000 Canadian Exploration Expense (“CEE”) and 13,800,000 Canadian Development Expense (“CDE”) flow-through common shares (collectively, the “Flow-Through Common Shares”) of the Company, at a price of C$2.95 per CEE Flow-Through Common Share and C$2.54 per CDE Flow-Through Common Share, for gross proceeds of approximately C$45 million. In addition, the Company has also granted the underwriters an option, exercisable up to 48 hours prior to the closing of the offering, to purchase up to an additional 15% of the number of Flow-Through Common Shares, in the same percentage (etc etc).

In any fair and transparent market, all trades in Argonaut Gold (AR.to) today would be rolled back by market authorities and buyers compensated for the fraud perpetrated, but this is Canada so don’t even bother dreaming. Down 7% today on 2X average volume while both GDX and GDXJ rose, AR’s C$2.27 close is 10% higher than the re-buy price being offered this evening to retail by Canaccord (C$2.05). As for the company, what level of desperation is AR’s chair showing by running a large financing at this sort of discount without securing a replacement CEO first? That “excellent relationship with Ausenco” only remains super duper and fabulous as long as you keep writing cheques with their name at the top.

5 Comments

    Down 7% because of the pre-market PR, no?

    Reply

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