Here’s a couple of key excerpts from when the bought deal was originally announced:
South American Silver Corp…………. announces that it has entered into an agreement with Wellington West Capital Markets Inc. (the “Lead Underwriter”), on behalf of a syndicate of underwriters (together with Lead Underwriter, the “Underwriters”), to sell 6,350,000 Units (“Units”) at a price of $0.63 per Unit for gross proceeds of approximately $4.0 million, on a “bought deal”, private placement basis (the “Offering”).
The Underwriters shall also have the option, exercisable up to 48 hours prior to closing of the Offering, to increase the size of the Offering by up to an additional 3,175,000 Units at the same price per Unit as is applicable to the Offering (the “Underwriters’ Option”)……..
Completion of the Offering is scheduled for July 12, 2010 and is subject to……
South American Silver Corp. (“South American Silver” or the “Company”) is pleased to announce that it has closed 5,310,000 units, for gross proceeds of $3,345,300, of its previously announced bought deal private placement of an aggregate of 6,350,000 Units (“Units”), priced at $0.63 per Unit, for gross proceeds of $4,000,500 (the “Offering”). A second closing is anticipated to occur on or about July 19, 2010 for the remainder of the Offering. The Corporation has extended the period pursuant to which the Underwriters may exercise their option (the “Underwriters’ Option”) to increase the size of the Offering to July 23, 2010…..
Thusly, Wellington gets to sweat on whether it’ll be holding a bag full of paper this time next week. You gotta wonder whether the unpopularity of this bought deal has anything to do with this, inquiring minds and all that jazz………..