Return on InvestmentWhen ever there is a private placement that is at a discount to current share price investers fail to see that the cash injection will gernerate a return that will increase owner equity.
This cas injection unlocks the huge upside value in the asset. The discount is insignigicant compared to the returns that the cash injection will bring to all the share holders. The discount is very acceptable reward for the risk that the financiers take. Most backers of private placements in Canada actually lose money. There was a unversity study confirming this.
This is a good deal.