Edgewater Exploration (EDW.V), our favorite company in Spain announced they closed a bought deal at C$0.45/share for a total consideration of C$5M. Cormark Securities and FraserMacKenzie have agreed to buy in excess of 11 million shares at 45 cents with no warrant attached.
We consider this to be a good deal, as it provides the company with an immediate $5M in the treasury and as there are no warrants attached to this deal, the total impact on the fully diluted amount of shares remains quite low as about 14.5M warrants priced at C$1.10-1.40 will probably expire later this year without being exercised.
We sat down with Ryan King and George Salamis in Vancouver this weekend, and are very confident the management team will continue to tick the boxes with an upcoming resource estimate as first catalyst.
Disclosure: The author holds a long position in Edgewater Exploration Ltd. Please see our disclaimer for current positions.