Explor Resources Inc. (fka EXSFF)

[Flashminer]

I am very surprised by the result. It is no surprise that Explor needs the cash to continue drilling. That is why they arranged the rights offering. My logic was simply that since marguest owns 17% of the company Explor would do everything they can to market the offering to them in order to secure the much needed cash. With the share price lower than the offering price it is not an easy task. That's why I would do everything possible to secure that they participate.
Now I am not familiar with what rules govern funds in Canada. It might be that if Marquest had exercised their rights fully their ownership would have risen to a level which is against the rules.

Where I live if a public company plans a rights offering 1/3 of existing shareholders need to inform that they will participate before rights offering can start. Wouldn't be such a bad idea to have in place for TSX listed companies as well.

The big question in my mind is why did Explor let the rights offering fail?