Wednesday, July 24, 2013

CSI.t buries public types ... water me this

Colossus Minerals halted its paper late yesterday, released news, and then released full details immediately before resuming trading. Halting at the end of day (and Fridays) before news usually means its all bad and CSI.t proves that rule through the announcement of a wicked large dilutive unit offering at rock bottom.


Colossus Minerals Inc., in connection with its previously announced overnight marketed public offering of equity securities, has entered into an underwriting agreement between the company and a syndicate of underwriters co-led by GMP Securities LP and Dundee Securities Ltd., together with Canaccord Genuity Corp., Clarus Securities Inc. and TD Securities Inc., to sell 44 million units of the company at a price of 75 cents per unit for aggregate gross proceeds of $33-million.
Perhaps we should ask how this sits with the "Co-Lead Underwriters" of the LAST financing on June 12 ...

Colossus Minerals Inc. (TSX:CSI)(OTCQX:COLUF) (the "Company" or "Colossus") announced today that it has closed the previously announced offering with GMP Securities L.P. and Dundee Securities Ltd., as co-lead underwriters (the "Co-Lead Underwriters"), on their own behalf and on behalf of a syndicate of underwriters which included Canaccord Genuity Corp., Clarus Securities Inc. and TD Securities Inc. (together with the Co-Lead Underwriters, the "Underwriters"), with PowerOne Capital Markets Limited acting as a selling group member, pursuant to which a total of 17,968,750 common shares of the Company ("the "Offered Shares"), including those issued pursuant to the exercise, in full, of an over-allotment option granted to the Underwriters, were issued and sold at a price of C$1.60..."

So whats our upshot this time?

Water problems are a killer and to have a massive large one foisted on unsuspecting types is real bad. Who is to say a zillion dollars will stop water engress? This ridiculous management?
This company has lost all pretense of credibility and thats an easy judgement to make as the paper instantly drops to $ .72. A body needs to avoid this train wreck and gee whiz what a call.