phil_Buffett Posted April 28, 2014 Share Posted April 28, 2014 trading halted yep, they've filed a short-form prospectus to offer $65M in common shares Where did you find this info? here is it https://ca.finance.yahoo.com/news/altius-announces-65-million-offering-190700048.html Link to comment Share on other sites More sharing options...
gjangal Posted April 28, 2014 Share Posted April 28, 2014 trading halted yep, they've filed a short-form prospectus to offer $65M in common shares http://www.marketwired.com/press-release/altius-announces-65-million-offering-of-common-shares-tsx-als-1903727.htm Link to comment Share on other sites More sharing options...
yader Posted April 28, 2014 Share Posted April 28, 2014 And here's the link to Sedar. http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00008222 Link to comment Share on other sites More sharing options...
Phaceliacapital Posted April 28, 2014 Share Posted April 28, 2014 So more than 10% dilution? Link to comment Share on other sites More sharing options...
Blue Macaw Posted April 28, 2014 Share Posted April 28, 2014 So more than 10% dilution? yes and it is a bit unclear what the price will be per share. If around 15-16 I would be quite happy with it to be honest. But who knows? Link to comment Share on other sites More sharing options...
naboo Posted April 28, 2014 Share Posted April 28, 2014 I don't like dilution in general. Link to comment Share on other sites More sharing options...
Phaceliacapital Posted April 28, 2014 Share Posted April 28, 2014 No exactly... Pursuant to the terms and conditions of the Agency Agreement the Company has engaged the Agents as its agents to offer for sale to the public on a best efforts basis, Common Shares offered hereby at a price of $ per Common Share for aggregate gross proceeds of up to $65,000,000. The Common Shares are being offered to the public in all of the provinces and territories of Canada. The terms of the Offering and the offering prices of the Common Shares were determined by arm’s length negotiation between the Company and the Agents with reference to the prevailing market price of the Common Shares on the TSX. Subscriptions for Common Shares will be received subject to rejection or allotment in whole or in part, and the right is reserved to close the subscription books at any time without notice The Company has agreed to pay to the Agents’ a fee of $ per Common Share issued and pursuant to the Offering (the ‘‘Agents’ Fee’’). Isn't the main consensus on this thread that Altius is great at buying shares when they're cheap, and selling when they're expensive... ? Link to comment Share on other sites More sharing options...
Guest Dazel Posted April 28, 2014 Share Posted April 28, 2014 We may be in the mid $20's by the time the deal gets done...this is a great move.... Altius will now get exposure and coverage from all of the underwriters....I am very pleased. We could have an incredible run as I mentioned after the deal gets done.... Welcome to some exposure and enjoy the ride....you will all love owning a royalty company! Dazel. Link to comment Share on other sites More sharing options...
Blue Macaw Posted April 28, 2014 Share Posted April 28, 2014 No exactly... Pursuant to the terms and conditions of the Agency Agreement the Company has engaged the Agents as its agents to offer for sale to the public on a best efforts basis, Common Shares offered hereby at a price of $ per Common Share for aggregate gross proceeds of up to $65,000,000. The Common Shares are being offered to the public in all of the provinces and territories of Canada. The terms of the Offering and the offering prices of the Common Shares were determined by arm’s length negotiation between the Company and the Agents with reference to the prevailing market price of the Common Shares on the TSX. Subscriptions for Common Shares will be received subject to rejection or allotment in whole or in part, and the right is reserved to close the subscription books at any time without notice The Company has agreed to pay to the Agents’ a fee of $ per Common Share issued and pursuant to the Offering (the ‘‘Agents’ Fee’’). Isn't the main consensus on this thread that Altius is great at buying shares when they're cheap, and selling when they're expensive... ? Selling shares when they are expensive is a good thing and i do think 15-16 is a reasonable price. If lower I would be disappointed. It cannot have come as shock to anyone after the CDP price was raised. How would this compare to having unsecured loans? Link to comment Share on other sites More sharing options...
jjsto Posted April 28, 2014 Share Posted April 28, 2014 http://www.marketwired.com/press-release/altius-closes-acquisition-of-prairie-royalties-and-cdp-portfolio-tsx-als-1903741.htm Link to comment Share on other sites More sharing options...
BRK7 Posted April 28, 2014 Share Posted April 28, 2014 We may be in the mid $20's by the time the deal gets done...this is a great move.... Altius will now get exposure and coverage from all of the underwriters....I am very pleased. We could have an incredible run as I mentioned after the deal gets done.... Welcome to some exposure and enjoy the ride....you will all love owning a royalty company! Dazel. Are you saying mid $20s in 2 weeks? Deal scheduled to close on/around May 12. Link to comment Share on other sites More sharing options...
naboo Posted April 28, 2014 Share Posted April 28, 2014 Back to very ooooooooooold question, the $65M is in USD or CAD?? ? ? if all numbers are in USD, if they can get USD 15 or 16 a share, that is a really good deal. No exactly... Pursuant to the terms and conditions of the Agency Agreement the Company has engaged the Agents as its agents to offer for sale to the public on a best efforts basis, Common Shares offered hereby at a price of $ per Common Share for aggregate gross proceeds of up to $65,000,000. The Common Shares are being offered to the public in all of the provinces and territories of Canada. The terms of the Offering and the offering prices of the Common Shares were determined by arm’s length negotiation between the Company and the Agents with reference to the prevailing market price of the Common Shares on the TSX. Subscriptions for Common Shares will be received subject to rejection or allotment in whole or in part, and the right is reserved to close the subscription books at any time without notice The Company has agreed to pay to the Agents’ a fee of $ per Common Share issued and pursuant to the Offering (the ‘‘Agents’ Fee’’). Isn't the main consensus on this thread that Altius is great at buying shares when they're cheap, and selling when they're expensive... ? Selling shares when they are expensive is a good thing and i do think 15-16 is a reasonable price. If lower I would be disappointed. It cannot have come as shock to anyone after the CDP price was raised. How would this compare to having unsecured loans? Link to comment Share on other sites More sharing options...
Blue Macaw Posted April 28, 2014 Share Posted April 28, 2014 Interest rates on the loans. By paying back 20 million more they lower the interest rate. "Interest Interest will be calculated on the principal balance outstanding, per annum calculated daily, compounded monthly, in accordance with the following interest rates: (i) 8.85% if the outstanding principal amount is between $120,000,000 and $140,000,000; (ii) 7.80% if the outstanding principal amount is between $110,000,000 and $119,999,999.99; (iii) 7.35% if the outstanding principal amount is between $100,000,000 and $109,999,999.99; (iv) 6.95% if the outstanding principal amount is between $80,000,000 and $99,999,999.99; and (v) 6.5% if the outstanding principal amount is between $0 and $79,999,999.99. Interest is payable monthly on the last business day of each month. Interest not paid when due will be added to the principal amount of the Credit Facility and will bear interest from such due date at the rates set out above Link to comment Share on other sites More sharing options...
SharperDingaan Posted April 28, 2014 Share Posted April 28, 2014 Very telling how they are going about this ... They will be selling the additional 15%. Think 75M. Institutional buyers only. If you want the shares, firm commitments by Wednesday (Apr-30), end-of-day please. Price is being determined by auction. At $25/share; 3M shares (11%). At $30/share; 2.5M shares (9%). If you tried to buy 2.5M shares out of the market right now, most would expect around a 100% premium - so maybe $30-35/share. And if you don't get your full allotment ... you have to buy it out of the market; therefore bid high. New money, big money, & nobody can afford to look bad once it settles. Congratulations, gentlemen. SD Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted April 28, 2014 Share Posted April 28, 2014 No exactly... Pursuant to the terms and conditions of the Agency Agreement the Company has engaged the Agents as its agents to offer for sale to the public on a best efforts basis, Common Shares offered hereby at a price of $ per Common Share for aggregate gross proceeds of up to $65,000,000. The Common Shares are being offered to the public in all of the provinces and territories of Canada. The terms of the Offering and the offering prices of the Common Shares were determined by arm’s length negotiation between the Company and the Agents with reference to the prevailing market price of the Common Shares on the TSX. Subscriptions for Common Shares will be received subject to rejection or allotment in whole or in part, and the right is reserved to close the subscription books at any time without notice The Company has agreed to pay to the Agents’ a fee of $ per Common Share issued and pursuant to the Offering (the ‘‘Agents’ Fee’’). Isn't the main consensus on this thread that Altius is great at buying shares when they're cheap, and selling when they're expensive... ? Looks like Brian Dalton figured out that Alderon is a bust? Dalton is not stupid. He would not do a secondary offering unless Altius shares were overpriced. Link to comment Share on other sites More sharing options...
Williams406 Posted April 28, 2014 Share Posted April 28, 2014 Looks like Brian Dalton figured out that Alderon is a bust? Dalton is not stupid. He would not do a secondary offering unless Altius shares were overpriced. I agree Dalton is not stupid. Perhaps, though, he might do a secondary offering with shares below intrinsic value if he had confidence he was acquiring more than he was giving up. Link to comment Share on other sites More sharing options...
JAllen Posted April 28, 2014 Share Posted April 28, 2014 Looks like Brian Dalton figured out that Alderon is a bust? Dalton is not stupid. He would not do a secondary offering unless Altius shares were overpriced. I agree Dalton is not stupid. Perhaps, though, he might do a secondary offering with shares below intrinsic value if he had confidence he was acquiring more than he was giving up. The royalties are awesome, but just doing some cursory math on CDP tells you why he's fine with selling shares here. He's right to do this and maintain an ultra-conservative capital structure. Link to comment Share on other sites More sharing options...
SharperDingaan Posted April 28, 2014 Share Posted April 28, 2014 These will also be the shares that they were buying back.... so expect a healthy BV gain in Q2 ;) SD Link to comment Share on other sites More sharing options...
gary17 Posted April 28, 2014 Share Posted April 28, 2014 Hi SD and Dazel and others You sound very confident and know the "moves" of the management strategy well. Can I ask is this based in your past experience of similar companies or a former company Mr. Dalton ran? Thanks! Link to comment Share on other sites More sharing options...
bizaro86 Posted April 28, 2014 Share Posted April 28, 2014 Very telling how they are going about this ... They will be selling the additional 15%. Think 75M. Institutional buyers only. If you want the shares, firm commitments by Wednesday (Apr-30), end-of-day please. Price is being determined by auction. At $25/share; 3M shares (11%). At $30/share; 2.5M shares (9%). If you tried to buy 2.5M shares out of the market right now, most would expect around a 100% premium - so maybe $30-35/share. And if you don't get your full allotment ... you have to buy it out of the market; therefore bid high. New money, big money, & nobody can afford to look bad once it settles. Congratulations, gentlemen. SD I think its pretty unlikely the shares go for dramatically more than whatever the current price is when the offering closes. I can't think of an example of that ever happening. (A large premium in a new share issue that is, outside of maybe recapitalizations of cash shells). A small discount is much more common. After all, if you were trying to sell 2.5 million shares quickly you'd probably expect to take a discount as the trading volume doesn't support that... I'll be very, very happy if you're right, but it doesn't strike me as realistic. Link to comment Share on other sites More sharing options...
investor-man Posted April 28, 2014 Share Posted April 28, 2014 Looks like Brian Dalton figured out that Alderon is a bust? Dalton is not stupid. He would not do a secondary offering unless Altius shares were overpriced. I agree Dalton is not stupid. Perhaps, though, he might do a secondary offering with shares below intrinsic value if he had confidence he was acquiring more than he was giving up. The royalties are awesome, but just doing some cursory math on CDP tells you why he's fine with selling shares here. He's right to do this and maintain an ultra-conservative capital structure. Hi JAllen, Can you explain this like I'm five? The way I see it, if there was confidence that the JL deal were to succeed, they'd wait to issues share until after because the share price would surely jump. To my mind, issuing shares here, mixed with good news, means they think the price will likely drop. Maybe there's some other reason, like they desperately need money to buy some land, but the simple answer to "why are you selling shares you just bought?" is the same as any of us would answer: "because they've reached fair value." Link to comment Share on other sites More sharing options...
phil_Buffett Posted April 28, 2014 Share Posted April 28, 2014 Looks like Brian Dalton figured out that Alderon is a bust? Dalton is not stupid. He would not do a secondary offering unless Altius shares were overpriced. I agree Dalton is not stupid. Perhaps, though, he might do a secondary offering with shares below intrinsic value if he had confidence he was acquiring more than he was giving up. The royalties are awesome, but just doing some cursory math on CDP tells you why he's fine with selling shares here. He's right to do this and maintain an ultra-conservative capital structure. Hi JAllen, Can you explain this like I'm five? The way I see it, if there was confidence that the JL deal were to succeed, they'd wait to issues share until after because the share price would surely jump. To my mind, issuing shares here, mixed with good news, means they think the price will likely drop. Maybe there's some other reason, like they desperately need money to buy some land, but the simple answer to "why are you selling shares you just bought?" is the same as any of us would answer: "because they've reached fair value." good Argument with the share Price. when they win JL share Price would be much higher. Very telling how they are going about this ... They will be selling the additional 15%. Think 75M. Institutional buyers only. If you want the shares, firm commitments by Wednesday (Apr-30), end-of-day please. Price is being determined by auction. At $25/share; 3M shares (11%). At $30/share; 2.5M shares (9%). If you tried to buy 2.5M shares out of the market right now, most would expect around a 100% premium - so maybe $30-35/share. And if you don't get your full allotment ... you have to buy it out of the market; therefore bid high. New money, big money, & nobody can afford to look bad once it settles. Congratulations, gentlemen. SD I think its pretty unlikely the shares go for dramatically more than whatever the current price is when the offering closes. I can't think of an example of that ever happening. (A large premium in a new share issue that is, outside of maybe recapitalizations of cash shells). A small discount is much more common. After all, if you were trying to sell 2.5 million shares quickly you'd probably expect to take a discount as the trading volume doesn't support that... I'll be very, very happy if you're right, but it doesn't strike me as realistic. i also could not believe it. i wish it will be as SD describes, that would be so nice, but i think the exactly other direction will come. share Price tommorow or the next days down 5-10%. :( i really really hope SD is right! Link to comment Share on other sites More sharing options...
hohi Posted April 28, 2014 Share Posted April 28, 2014 Well it was obvious to everyone that ALS didn't have all the money to buy the royalties, especially after the announced they would buy 100% of CDP. I don't like a PP and I don't like debt. But I like the royalties and CDP properties and am confident that our management thought it through. I don't believe ALS thinks Alderon is a bust. They just needed the money now, or they would have lost the deal. I am wondering which equities they will sell / already sold. Would be hard to sell all of the Virginia Mines equity so fast. Or maybe it is all done already... Link to comment Share on other sites More sharing options...
Guest Dazel Posted April 28, 2014 Share Posted April 28, 2014 Altius has not traded in the market since it closed the PMRL deal....It was halted from the share issue announcement. $65m is not a large share issue. If Dalton thought his stock was overvalued he would have raised a lot more money through equity not debt.... I guess we can tell from the tone of some posts who was selling Altius and who was buying. Dazel. Link to comment Share on other sites More sharing options...
Guest Dazel Posted April 28, 2014 Share Posted April 28, 2014 Altius has achieved a game changing event....they will now have cashflow for 30 to 70 years....even if management are not there! The structure of the deal is very good....and we will now get the multiples we deserve....we will be compared to the best royalty companies in the world...their multiples are more than twice ours...we will see where we fit. The market will decide....but make no mistake this is a huge huge day for Altius. Congrats and thanks to the Altius team! They have worked their ass off for us and pulled off a great transforming deal! Dazel Link to comment Share on other sites More sharing options...
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