Thursday, January 22, 2015

Wow, way to screw over your shareholders, Romarco

I had this stock on my radar because Ron Stewart from Dundee Clarus wherever reccied it on The Gold Report.

Check this out:

CMJ - Romarco announces $300M bought deal financing. Quote:

Romarco Minerals Inc. ("Issuer" or "Company") (TSX:R) has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and Cormark Securities Inc., under which the underwriters have agreed to buy on a bought deal basis 517,300,000 common shares (the "Common Shares"), at a price of $0.58 per Common Share for gross proceeds of $300,034,000 (the "Offering"). The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any.

Jesus guys, you only had 725M shares outstanding to begin with. Way to dilute the fuck out of your shareholders.

Well, at least we can be certain that the people who recently joined the goldbug world are learning their lessons early.

UPDATE: What's the lesson? The lesson is, if you own a junior that's not flush with cash, you should puke it immediately because they're going to pump you in the ass any second now. Because Canaccord and Cormark and BMO are the only ones allowed to make money in this game, not you.

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