K12,

The bought deal:

Crystallex International Corporation (TSX:KRY) (NYSE Amex:KRY) ("Crystallex" or the "Company") announced today it has entered into an agreement with a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. and including GMP Securities L.P. ("the Underwriters"). Under the agreement, the syndicate has agreed to purchase, on a bought deal basis, 70,000,000 units (the "Units"), each Unit comprised of one common share (each, a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant") of the Company, at a price of CDN$0.50 per Unit (the "Offering Price") for gross proceeds to Crystallex of CDN$35,000,000. Each Warrant will entitle the holder to acquire one Common Share at a price of CDN$0.70 for a period of one year following the date of issue.

What you said:

Yes, all good points but all shares purchased through the bought deal were for each shares bought they received additional shares for later distribution so this lowered their cost basis. Why would an institution sell when they got a favored deal.

Best get your facts straight. Sure they get the warrants, but they still have to pay $0.70 to buy the shares. How does this lower their cost basis?