Why the Ballard Share Suddenly Climbed over 10 Percent
Vancouver, Canada - The fuel cell company Ballard Power Systems yesterday announced an agreement with a syndicate of underwriters led by National Bank Financial Inc. and Raymond James Ltd., pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 12,988,000 common shares of the Company at a price of US$19.25 (16.22 Euro) per Common Share for gross proceeds of US$ 250,019,000 (about 210,725,000 Euro).
As Ballard points out, the Company intends to use net proceeds of the Offering to further strengthen the balance sheet, thereby providing additional flexibility to fund its growth strategy, including through activities such as product innovation, investments in production capacity expansion and localization, future acquisitions and strategic partnerships and investments.
The Offering is expected to close on or about November 27, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.
Following the announcement of the share placement, Ballard Power's share price rose significantly in yesterday's trading. At the end of the trading day, the Ballard Power share climbed by around 12 per cent to a price of EUR 18.19 (closing price November 23, 2020, Stuttgart Stock Exchange). Today, the Ballard Power share has to relinquish part of its gains. The share is currently trading at a price of 17.83 euros, down 5.22 per cent (24.11.2020, 3:34 pm, Stuttgart Stock Exchange).
Source: IWR Online, 24 Nov 2020