Jump to content

ALS.TO - Altius Minerals


Guest Dazel

Recommended Posts

Gio,

 

I would say a management's quality is a function of all relevant decisions made, including financing choices. My assessment of management today has a lower grade than last week. I concede that even the best will make mistakes along the way as they face the same limitations we all do such as crystal balls that don't function properly. With this equity raise, my ownership stake is adversely affected without my having sold a share directly. Giving up some equity to get a lot more value can make sense. But I doubt they had to do it this way. I'm not shouting off with their heads here, but I'm not giving them a free pass, either.

 

We always knew a funding gap would exist if CDP ROFR was waived and management had time to consider options. This wasn't the best one in retrospect. I'd love to see a Plan B given the way this has unfolded.

Link to comment
Share on other sites

  • Replies 7.5k
  • Created
  • Last Reply

Top Posters In This Topic

Gio,

 

I would say a management's quality is a function of all relevant decisions made, including financing choices. My assessment of management today has a lower grade than last week. I concede that even the best will make mistakes along the way as they face the same limitations we all do such as crystal balls that don't function properly. With this equity raise, my ownership stake is adversely affected without my having sold a share directly. Giving up some equity to get a lot more value can make sense. But I doubt they had to do it this way. I'm not shouting off with their heads here, but I'm not giving them a free pass, either.

 

We always knew a funding gap would exist if CDP ROFR was waived and management had time to consider options. This wasn't the best one in retrospect. I'd love to see a Plan B given the way this has unfolded.

 

This is very reasonable and I agree.

 

Gio

Link to comment
Share on other sites

We should not be to hard on them just yet. We still don´t know what they will get for the shares. If they get 18 we will all be singing hallelujha all the way to church (not me I am Swedish). If they get 15 I would be happy actually. If 14 ok, if 13 disappointed, 12 very disappointed, 11 I am out. (Then management have lost it and trust will be completely gone).

 

The problem is that they should have disclosed the price they were going to sell them for. This is the major flaw.

Link to comment
Share on other sites

What I know is that, if the partners in my company were able to get out anytime they don't agree with a decision of mine, I would have been partnerless since a very long time now!

 

Besides, I don't know if a mix of debt and equity is decidedly the wrong choice... I am not so sure about it...

 

As I have said, I am buying more today.

 

Gio

Link to comment
Share on other sites

It is time for ALS to enforce some UW discipline; the smart thing would be to pull 1/2 the offering - & make Scotia wear it. Some people still get shares, but everybody gets fewer fees. This is a rich deal, & to lose it simply because the lead screwed up, is not appreciated.

 

SD

Link to comment
Share on other sites

There is no minimum amount of funds that must be raised under the Offering. This means that the Company could complete this Offering after raising only a small proportion of the Offering amount set out above.

 

Pursuant to the terms of the Agency Agreement, the Agents will be paid a fee (the ‘‘Agents’ Fee’’) of 5.0% of the gross proceeds from the sale of the Common Shares, including any additional Common Shares sold pursuant to the exercise of the Over-Allotment Option.

 

On April 25, 2014, the last trading day before the date of this short form prospectus, the closing price per Common Share on the TSX was $15.46

 

 

 

The UW was hired to sell shares into a tight market, provide market coverage & price support, & is being well paid for it.

Do squat, & you get squat.

 

SD

Link to comment
Share on other sites

We should not be to hard on them just yet. We still don´t know what they will get for the shares. If they get 18 we will all be singing hallelujha all the way to church (not me I am Swedish). If they get 15 I would be happy actually. If 14 ok, if 13 disappointed, 12 very disappointed, 11 I am out. (Then management have lost it and trust will be completely gone).

 

The problem is that they should have disclosed the price they were going to sell them for. This is the major flaw.

 

I just spoke to management & the pricing is done... will get announced today.  Let's just say you won't be disappointed.  Trade is halted btw.

Link to comment
Share on other sites

Scotia said they would price the offer yesterday. 

 

Important Details

Issuer: Altius Minerals Corporation

 

Issue: Offering of common shares

 

Minimum Order: 100

 

Price: 16.32

 

Sizing: 65000000

 

Closing Date: May 12, 2014

 

***Please note the final offering price is yet to be determined. It is expected that the final offering price will be announced on or about Wednesday April 30th, 2014 and the offering will be priced based on the context of the market at this time***

 

***Allocations for this deal are expected to be posted online on or about TBA***

 

Issuer: Altius Minerals Corporation (the “Company”).

 

Issue: Offering of common shares (the “Common Shares”).

 

Amount: Up to $65,000,000.

 

Issue Price: $? (To be determined in the context of the market.)

 

Over-Allotment Option: The Agents shall have the option, exercisable in whole or in part for a period of 30 days after the Closing Date, to purchase up to an additional 15% of the Issue at the Issue Price and on the same terms and conditions as set forth herein to cover over-allotments, if any, and for market stabilization purposes.

 

Use of Proceeds: The net proceeds of the Issue will be used (i) to pay the OTPPB Purchase Price to OTPPB, (ii) to repay the $7.2 million Unsecured Loan, (iii) to repay $20 million of the Credit Facility and (iv) for general corporate purposes.

 

Listing: Application has been made to list the Common Shares on the Toronto Stock Exchange under the symbol “ALS”.

 

Eligibility: The Common Shares are eligible under the usual statutes for RRSPs, RRIFs, RESPs, RDSPs, DPSPs, and TFSAs.

Link to comment
Share on other sites

We should not be to hard on them just yet. We still don´t know what they will get for the shares. If they get 18 we will all be singing hallelujha all the way to church (not me I am Swedish). If they get 15 I would be happy actually. If 14 ok, if 13 disappointed, 12 very disappointed, 11 I am out. (Then management have lost it and trust will be completely gone).

 

The problem is that they should have disclosed the price they were going to sell them for. This is the major flaw.

 

I just spoke to management & the pricing is done... will get announced today.  Let's just say you won't be disappointed.  Trade is halted btw.

 

Why say shit like that...? 'You won't be disappointed...'

Link to comment
Share on other sites

I just received a call from Altius management in response to an email query. The $14 price is OK IMO. I have a much better feeling about this now that the deal is done, even if it is somewhat dilutive. Hopefully, we can make some money from these promising assets.

Link to comment
Share on other sites

So the new share count should stand at 4,64 M + 27,6 M=32,24 M shares

 

5.34 M if the full Over-Allotment Option is exercised.

 

It says in the news that there is no over allotment optin. Withdrawn?

 

Whoops, missed that.  That is good news.

Link to comment
Share on other sites

We are sorry, but $14.00/share does not cut it.

 

Reduce the size to raise the outstanding to +/- 30M (institutional investable minimum), elevate the price in a 2nd discovery round, & simply temporarily increase the credit line (incremental 50/50 debt/equity mix). ALS is CF positive, & there is nothing to prevent them from coming back to the market after the Kami financing is announced, & JL is spun out. If the UW marketing support is any good, there should not be no problem with doing a bought deal at a higher price

 

Graceful exit, UW discipline enforced, & they come back as a senior - not a junior.

A 65M best efforts raise with 5% UW fee, & 15% UW over allotment is Howe Street, & bad Howe Street at that. World class, senior royalty firms, don't do their primary financing in Vancouver.

 

SD

 

 

 

 

 

 

Link to comment
Share on other sites

SD,

 

I'm with you on these terms. It didn't have to be done this way. I'm open to some equity dilution on better terms, but I consider Altius the kind of investment I'll be lucky to find more than once or twice in a lifetime. Giving away this much ownership hurts if there are alternatives.

 

348 (formerly known as 406)

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...