Ah Zen, once again you have opened my eyes to a bigger world previously beyond my imaginings - having read (and re read x 3) that March announcement I think I now understand what it was for and what the latest sale to Acuity is all about. Everyone will recall that at the time of the March announcement most of us (moi included) could not understand it or why it was a good move by the company. Now that they have put it into effect I think I get it.
The deal ICG did with Acuity in March was basically that for the next 12 months ICG could decide to sell (and Acuity
had to buy) up to $3 million worth of shares at a 10% discount to the volume weighted average price (VWAP) calculated over the placement period. If you look at the Clearance Notice filed today it shows the details of the calculation of the sale price based on the VWAP. As we know during the placement period the SP reached up to 2.7, which dragged the VWAP average up, well above the current SP.
So basically the sale to Acuity this week was an instance of ICG partially exercising its option to sell to Acuity, at above market prices - and Acuity had to do so as per the terms of the March agreement. So I retract my comment in my previous post that it was a vote of confidence by Acuity - it wasn't because they had no choice
