Oreninc Index Update: January 21, 2016

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Oreninc Index Falls to 21-Week Low

The Oreninc Index fell to a 21-week low for the week ending January 21, 2015. Total dollars announced jumped to $58.4m, a two-week high. One brokered and bought deal financing was announced for $15m, seven-week and nine-week highs respectively.

The biggest deal-making news of the week came from Suncor Energy (TSX:SU) increasing its friendly takeover bid of Canadian Oil Sands (TSX:COS) to $6.6bn, which is now backed by both companies. Gold had a moderately good week, increasing slightly. Oil had a tumultuous week, reaching an almost 13-year low on Wednesday before recovery slightly to end the week.

Despite the horrible index performance, some metrics such as total dollars announced did raise significantly. Part of the reason for the awful performance so far this year has been because here have not been many deals announced yet. Let’s see if that is the start of a trend as companies are finding it more and more difficult to raise money, or if they are merely saving the announcements for conference season to enhance their ability to market their deals.

Summary:

  • Number of financings increased to 10, a two-week high.
  • One brokered financing was announced for $15m, a seven-week high.
  • One bought deal financing was announced for $15m, a nine-week high.
  • Total dollars jumped to $58.4m, a two-week high.
  • Average offer size exploded to $5.8m, a 14-week high.

Major Financing Openings:

  • Largo Resources Ltd. (TSX-V:LGO) opened a $39 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 60 months. The deal is expected to close on or about January 22, 2016.
  • Integra Gold Corp. (TSX-V:ICG) opened a $15 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis. The deal is expected to close on or about February 11, 2016.
  • CB Gold Inc. (TSX-V:CBJ) opened a $1.64 million offering on a strategic deal basis.
  • Zenith Energy Ltd. (TSX-V:ZEE) opened a $1 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.

Major Financing Closings:

  • Perpetual Energy Inc. (TSX:PMT) closed a $25 million offering on a best efforts basis.    
  • NioCorp Developments Ltd. (TSX-V:NB) closed a $5.25 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 36 months.
  • Simba Energy Inc. (TSX-V:SMB) closed a $2.1 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.
  • Canadian Spirit Resources Inc. (TSX-V:SPI) closed a $0.97 million offering on a best efforts basis.

 

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