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Rubicon's banks cut price to move unsold stock Add to ...

A group of investment dealers who were stuck with a boatload of Rubicon Minerals stock after a share sale failed have cut the price and sold all the stock.

GMP Securities and TD Securities led a group of banks that agreed on Feb. 6 to buy 49 million Rubicon shares from the company, in hopes of reselling them to investors in the market at $4.10 apiece to raise about $200-million. However, investors weren't biting, as this post detailed, and the stock remained unsold.

The banks sold the Rubicon stock at $3.75 Thursday, with the reduced price attractive enough to bring in more than enough investors to take the whole amount, said people familiar with the transaction.

Rubicon will get a cheque for the full amount that the offering was supposed to raise, and the dealers in the syndicate will have to eat the difference.

Dealers in the syndicate will now be hoping to recoup some of their lost revenue via a rebound in the stock. Trading desks at syndicate members are long Rubicon shares after piling into the market as buyers to support the stock in the days after the original offering failed.

GMP is a unit of GMP Capital , while TD Securities is part of Toronto-Dominion Bank .

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