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10/25/17

A week of Excellon (EXN.to)

This time last Thursday, Excellon Resources (EXN.to) was a $2.19 stock. So with 76.3m shares out, its market cap was C$167.1m. Now, assuming (as we should) that the bought deal upsize and overallotment fills and closes in good order, the company has a de facto 84m shares out. So with its share price at $1.80 as I write these words, its market cap is C$151.2m. We can therefore state that the decision made by EXN to add $15m in cash to the company has cost it nearly $16m net in less than a week. Of course, not everybody is unhappy about this:
  • EXN management is happy, they get $15m in capital to play with.
  • Cantor and PI Fin are happy, they get the commish on the bot deal.
  • New shareholders coming in on the deal are happy, they get discounted shares and a half warrant to boot.
So, who loses out on this deal? Dear longer-term shareholder and supporter of EXN, go take a look in a nearby mirror. Pleasant to be treated this way, right?