What is well’s bought deal.,

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Hello..first of all thank you for teaching me..all this stuff ..now my investing is so well directed and awesome…

Secondly,,what does a bought deal mean..like well now has one at $6.85..

that it completed yesterday..what does it mean..for the direction of the stock price..

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Asked on October 23, 2020 11:05 am
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thankyou

I couldn't find this info. on investopedia or anywhere else

the way you made it clear

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Posted by Ayesha Ahmad
Answered on October 24, 2020 9:08 am
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Simply put - a bought deal is type of share offering. In a Bought Deal Offering, the investors ( a single or group of) buy the entire lot of shares and thus assume the risk. As they take on this risk, they are typically at a big discount to the market value of the shares. They will then sell the shares on the open market in the hopes of making a profit. The advantages for them, is that they get the shares at a steep discount to market price and if there is strong demand, can lock it significant profits.

The benefit for a company like WELL is that it secures the financing required without taking the financing risk themselves.

Mat

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Posted by Mathieu Litalien
Answered on October 24, 2020 7:22 am
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