RE: RE: I am wrongAfter doing some research as to why companies would do a PP at a discount to where the stock has been for months and to make it worse, at a 52 week low, the answer becomes a little clear to me. My conclusion would be that insiders want to own more shares before they start their big drill program that would make the company materially more valuable. Also, those with ties to insiders, etc would want a private placement done at a low price before the company start making real news with well results (especially that most of their drilling are low risk) -- some of those getting in on this PP could be people who financed the company at higher prices (see previous PP) and this would be a way of allowing them to dollar cost average.
For all the possible scenarios, we need to see insider fillings couple days after the financing closes -- if insiders participate, it explains a lot for the lower price. Non insiders who have ties to insiders can also participate and we would have no way of knowing this -- it would NOT be considered conflict of interest as this would be a legal way of getting house hold members of insiders, etc involved -- they simply would say the company needed the money for operations. Nothing else makes sense to me as to why they would do a PP at 52 week low, unless information on their web-site and Presentation is inaccurate and miss leading?