From the note:
"One, on the massive 14% discount. Two, given the company had raised C$70Mn in convertible debentures after the Oct qtr, and had entered into an after-market facility to raise equity (to a maximum of 10% of the share base, or about $75Mn), we wonder about the need for these extra C$32Mn proceeds. Would the discount had been worse using the after-market facility, or this facility was really not going to be available? We note the company reported negative FCF of ~C$80Mn in the Oct qtr after negative FCF of C$120Mn in the Jul qtr. In our projected estimates, we show the C$70Mn proceeds from the convertible offering plus today’s equity offering. For valuation purposes we use 327.8Mn shares."