Cornerstone Capital Resources Inc V.CGP

RE: Cornerstone closes $3.02-million PP

[nijinsky70]

I have to disagree. The selection of a private placement price, and the same for stock option price, is mostly based on the market price on the date the deal is struck, or the closing market price of the date the option is granted (sometimes they could be based on the stock price average of a range of days). It is a very standard business practice. The new CGP PP shareholders did not get in on a discount, CGP was traded around $0.55 during that period. Also, that $0.55 price is water under the bridge now. It has no bearing on how CGP's share price should advance from hereon.