ThinkStrategic wrote: Zzthnx
I once asked Bernard on Agoracom if he was planning the next round of financing (more dilution) and at the time we were in the low 0.10c. My concern with financing at the low 0.10c range was that we would be massively diluting. Here was my post.
"Hello Bernard
I just wanted to get an idea of when you will be going back to the market for a private placement for the next round of funding?
Will it be after the promotional activities that you previously indicated your were planning on doing to get the SP back up over the 0.25c mark or will it be now when we are in the lowest 52 week period?
I think I can speak for alot of investors here that would would rather not see financing at 0.09c and would rather see other forms of financing (government loan, or R&D credit) or something other than dilution at 0.09c.
Best regards; "
To which he replied
Hi,
You don’t make my life easy; please remember that my answer cannot divulge any material information that is not public and FYI private placement are material information….
I will try my best to reply but you must understand that: A) the scope of my answer will be general and limited as per my statement above, and B) It would not be wise for us to publicly disclose too much our funding strategy (and there is always a strategy), so that day traders can just trade around it for a small profit per trade, all the while discouraging long term investors.
Regarding your first question:
“I just wanted to get an idea of when you will be going back to the market for a private placement for the next round of funding?”
Our overall $8,260,000 funding needs over the 3 years of the project has been publicly disclose in our press release and presentation.
Since the August 2016 start of the Pilot Plant project our cash call have been time specific and this why HPQ has raised and invested toward the project cost $ 4,455,000 (or 54%).
The remaining $3,805,000 (46%) is now milestones specific, so this give us more time to plan ahead, but the exact nature of how we will complete these financing is still fluids as we await the Quebec Government.
Regarding your second question:
“Will it be after the promotional activities that you previously indicated your were planning on doing to get the SP back up over the 0.25c mark or will it be now when we are in the lowest 52 week period?”
Steve, I thing your question is an amalgams of many issues.
First let me address the $0.25 mark, that comment was never related to future financing via private placement but through warrant exercise.
You see we have $6.1 million worth of warrant that could be exercise from July 2018 to March 2019, if our share price is above the $0.25 mark….
Regarding our promotional activities, what investors tend to forget is that our promotion is base on R&D work mostly, and as such R&D timeline and success are not continuous by nature. There are some period that seem as if nothing is happening and then there are period were all is happening at the same time…
Since March of this year, we have been under what seem to the public eye as a quiet phase that resulted into an uncoupling between HQP the company and HPQ, the trading shares occurred.
Don’t be fooled by that into believing that the Purevap project a failed science experience… The fact is that the PUREVAP today is a much more advanced and mature project than when the share price was 25 cents.
It is frustrating but we have to keep our focus on developing and perfecting the product. In the longer term, creating an exceptional competitive silicon process should add real value to the company.
Regarding your final question:
I think I can speak for a lot of investors here that would rather not see financing at 0.09c and would rather see other forms of financing (government loan, or R&D credit) or something other than dilution at 0.09c.
Patrick and I are large shareholders, so our approach has always been to try to minimize the dilution while at the same time having sufficient cash to get the next milestones reached. To date this as serve us well, and we will need a pretty good argument to make us change our way.
Having spent a good part of the last year working to get government funding, what people must understand that it take time, just like R&D credits, they are nice to get but they take so long to come to fruition that it very difficult for us plan our cash position with a fast moving project like ours
As I have stated before, our future cash call are milestones dependent, and this should give us enough time for some of our ongoing project to give us some positive news…
Best regards;
Regards
Bernard Tourillon
CEO
We then got the news of a PP on November 14th for 11 million shares. A month later.
My point, if he confidently assures you that there will be no share consolidation, take it with a grain of salt. Bernard cannot take a position and will remain flexible in the future to do whatever he has to do to ensure that the financing continues to be a viable option.
TS