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1/31/17

The Alamos Gold (AGI) bought deal is falling badly flat

Word reaches this humble corner of cyberspace that the Alamos Gold (AGI) bought deal announced January 26th 2017, in which 31,45m shares are being sold by a suite of underwriters at U$7.95 a pop in order to raise a cool U$250m, is failing badly. According to reliable sources close to the book, just 20% of the shares have been placed so far and what with this being a bought deal, that means there are a whole bunch of bankers who aren't sleeping so very well right now.

How many? Well the bot deal is being led up by TD Sec, BMO Capital Markets and Macquarie Capital Markets Canada but below them, houses on the hook of this John McCluskey snafu also include CIBC, National Bank, Scotia, Desjardins, Haywood, Paradigm, RBC, Barclays Canada, GMP, HSBC Canada, Merrill Lynch Canada, RayJames, Citigroups Canada and Morgan Stanley Canada. Phew, quite a list.

And due to the failure to place these shares, all of those houses are going to be left holding their portion of this very large bag. And that means they'll all be squabbling and fighting to sell their bags into the market once this screw-up placement closes, trying to break even. In other words, McCluskey in his desperation to own the biggest penis compensation treasury in town has created The Mother Of All Overhangs on his own stock.



Whoops indeed.