RE:Private Placement and share priceYes. A Private Placement allows "Accredited Investors" to acquire shares at a price speculated to be better than on open market.
An Accredited Investor is quite simply someone with a lot of money to invest. Rather than buy a zillion shares retail they can buy a zillion shares thru private placement at a price usually anticipated to be below market value. An astute investor would not buy shares in PP at .01 anticipating the stock price will be below .01. The fact that they are offering PP at .01 means they anticipate the stock to be higher than .01 on PP closing otherwise why would anyone bother buying into the PP?
The stock price doesn't effect the pp closing. The more the stock goes up the more interest there will be in the PP though.