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Alexco Resource (T.AXR) slips 16% on increasing bought deal financing

Stockhouse Editorial
0 Comments| July 30, 2014

Alexco Resource (TSX:AXR, Stock Forum) upped its preciously announced short form prospectus offering with an announcement today that the company had entered into an amendment agreement with Canaccord Genuity to bump the underwritten offering from $5.0 million to $7.0 million.


According to the news release, the company granted Canaccord an option to purchase additional units at the offering price for additional gross proceeds of up to 15% for a period of 30 days after and including the date of close to cover for any over-allotments.


If the over-allotment option is fully exercised the total gross proceeds will increase to $8.1 million. Net proceeds will be directed toward exploration and development of the company's projects as well as general working capital purposes.


The transaction is expected to close on or around August 21, 2014 and is subject to all applicable regulatory approvals.


Alexco was in the news recently when the company originally announced the bought deal financing yesterday.


Shares dropped 16.18% on the news to $1.14 per share.


Currently there are 62.6m outstanding shares with a market cap of $71.3 million.

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