RE: RE: Like to see the upside kickerYou are seeing the glass half full so that is refreshing.
Essentially,there were 100 million shares outstanding before this NEW investor came onboard.
Now 25 million units at four cents were issued-that is 25%,no?
Then there is a warrant attached.That is another 25 million. 50%.No?
Then there is the cash and 750,000 shares for the finders fees plus a warrant.
That is another 1.5 million shares dilution.
Total dilution is 51.5 million shares dilution-majority control if the shares were pooled.
Essentially Ralph has done a deal that may cost him control of the project for a million bucks,and the new investor has the ability to purchase unlimited shares on the open market.
So,my guess is there is added value somewhere,something that is not being said because this deal sucks bigtime without unsaid kicker.
No?
The Company will issue 25,000,000 units at $0.04 per unit for gross proceeds of $1,000,000. Each unit consists of one common share without par value and one whole transferable share purchase warrant. Each warrant entitles the holder to purchase one additional common share of the Company
In addition, the Company will pay $30,000 in cash and issue 750,000 units to certain finders, representing 6% of the total proceeds of the private placement as finder's fees. Each finder's unit consists of one common share without par value and one whole non-transferable share purchase warrant. Each finder's warrant entitles the finder to purchase one additional common share of the Company under the same term as the private placement terms noted above.