Post by
Accountprince on Jul 27, 2021 10:10am
UP to 25% of Units Potentially Sold to Insiders
This morning's disclosure is certainly an eye opener. So undefined insiders could participate in up to 25% of the offering. Something should have been filed 21 days prior to their participation in the closing (July 6 for that filing?). I haven't seen anything yet.
The disclosure also lists some exemptions they are relying upon to exempt them from rules governing treatment of non-insider shareholders. Anyone familiar with these rules?
So we were at $0.53 per share. A bought deal for units is done at $.425 per share and the share price is engineered to less than $0.40 per share and stays there until closing. Insider provision to acquire 25% of the issue disclosed in press release concurrent with the closing announcement.
So if insider participation should have been disclosed say July 6 does the FMV get established that day or do you wait until they "negotiate" the bought deal with the underwriters on July 20 when the price is dropped? Many questions and no answers.
Looks like insiders will do anything to acquire more shares. That - in a very perverse way - validates the value we all feel is there.
Comment by
BayStreetWild on Jul 27, 2021 2:01pm
Looking back, the real winners of this story are the people buying today. Not the longs who are unappreciated or the people who are already down from the 42.5c financing. They're just solidifying the price for the guys buying at 36 cents and below. By design or accident.. who knows.
Comment by
jakayo4 on Jul 27, 2021 12:30pm
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