This is massive “ December 4, 2019, the Company established an ATM Program that allows the Company to issue up to $55 million (or its U.S. dollar equivalent) of Common Shares from treasury to the public from time to time, at the Company's discretion. Any Common Shares sold in the ATM Program are sold through the TSX, the NASDAQ, or any other marketplace on which the common shares are listed, quoted or otherwise traded, at the prevailing market price at the time of sale.
Subject to securities laws and stock exchange requirements, the volume and timing of distributions under the ATM Program are determined in the Company's sole discretion. The ATM Program is effective until the earlier of December 25, 2021 and the issuance and sale of all of the Common Shares issuable pursuant to the ATM Program, unless terminated prior to such date by the Company or the agents. The Company intends to use the net proceeds from the ATM Program to fund capital projects, for general corporate purposes and to repay indebtedness. As Common Shares distributed in the ATM Program are issued and sold at the prevailing market price at the time of the sale, prices may vary among purchasers during the period of the distribution.
Distributions of the Common Shares through the ATM Program are made pursuant to the terms of an equity distribution agreement dated December 4, 2019 among the Company, and the agents being: BMO Nesbitt Burns Inc., as Canadian agent, and BMO Capital Markets Corp., as U.S. agent.
As of the date of this MD&A, the Company issued 7,302,600 Common Shares during the month of December 2019 for gross proceeds of $22.9 million at a weighted average price of $3.14 per common share. Net proceeds realized were approximately $22.4 million after agents' commissions of approximately $0.5 million. Proceeds have been raised in both USD (for shares sold through the NASDAQ) and CAD (for shares sold through the TSX) and the weighted average share price was calculated using the spot rate on the day of settlement.
And remember they said when they issued it they had no plans to use it but within a month diluted 22 million worth of shares to open market, costing shareholders millions of their money.
