RE:$0.20 PPkidl2 wrote: Gatekeeper Systems Announces Non-Brokered Private Placement Units Offering
(via TheNewswire)
Abbotsford, BC / TheNewswire / April 3 rd , 2017 - Gatekeeper Systems Inc. ("Gatekeeper" or the "Company") (TSX.V: GSI; OTC: GKPRF) announces that it plans to conduct a non-brokered private placement offering (the " Offering ") of up to 10,000,000 units (the " Units ") at a price of $0.20 per Unit for gross proceeds of up to $2,000,000.
Each Unit will consist of one common share and one-half share purchase warrant (each whole share purchase warrant a " Warrant "), with each whole Warrant exercisable at $0.30 for a period of 24 months from the date of closing. Should the stock price trade over $0.40 per share for ten consecutive trading days, the Company will have the right to accelerate the expiry of the Warrants by giving notice to the holders of the Warrants by news release that the Warrants will expire on the date that is not less than 30 days from the date notice is given.
The Company plans to use the gross proceeds of the Offering for expansion of sales, its stop arm camera business, marketing and operations staff, and general working capital.
Subject to TSX Venture Exchange approval, the Company may pay qualified finders a fee consisting of cash and/or securities of the Company.
All securities issued under the Offering will be subject to a 4 month hold period under applicable Canadian securities laws. The closing of the Offering is subject to acceptance of the TSX Venture Exchange.
Hmmmm.....
Not sure I understand this move unless something major is in the works. Why dilute another 10,000,000 shares when cash from first warrants ($0.25) should be rolling into the coffers prior to July 2017 expiration?
Does the company really need this $2,000,000 right now for something?
or....
Is this a strategy to suppress share price below $0.25 and have all remaining July warrants expire?
Is this a strategy to have insiders and inside track investors on the PP list get a big advantage to purchase cheap shares at the expense of average Joe investor like me?
I don't understand why they could not have waited til after July expiration and do a PP at a possible higher price with less dilution..
Unless they really, really need the Cash right now!
I also think the additional 5,000,000 warrants at $0.30 will keep the shareprice suppressed and larger possible returns on this will be delayed as a result...
I originally had a target price of $0.40 - 0.50 by end of summer... I think this will be lowered now to $0.30 - $0.35
Further Guidance is required to really explain this move. And I think Further guidance and deals will be required for the shareprice to best my new target levels
Maybe someone else can shed some light on this?
thanks,
FI4