RE: RE: RE: RE: RE: RE: RE: PP at .20 is normalIsn't the average unit price
.25?
The offering is 10 million units. Each unit consists of one common share at
.20 and one warrant at
.30. For an average price of
.25.
.25 was market value on Monday, two days ago. This PP take time to put together, fund buyers for, and announce.
.25 was probably market price when the PP was initiated.
Any private placement does not decrease the value of the company in theory. The company is the one issuing the shares so the amount paid to the company for the share issuance and the shares themselves are suppose to cancel, in theory. The change in share price (if any) comes from investor reaction to the PP and the demand/supply of the shares. We are up in share price for the day.
I don't understand how you can invest in a company that doesn't have any revenue stream and get upset when they issue a PP. Without money to pay drillers and assay labs the share price isn't going to go up.
I think the real story is being missed here. The press release mentions that a permit to operate is expected in Q2 of 2010. That's within the next 3 months. Blue Notes website (
www.bluenotemining.ca) says that they expect "commercial production within 6 months of permitting". That is consistent with the time line covered in a previous post found here
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?s=EFG&t=LIST&m=27980742&l=0&pd=0&r=0
Remember this is an exisiting mine with a measured and indicated NI43-101 compliant resources that has been capped at 5 g/t. That means nothing under 5 g/t is included in the indicated resource.
As for the CFO... That could have to do with the Conway deal falling through... He could of had a better offer from another company... It could be for any number of reasons... I doubt it is because of a potential private placement at last weeks market value (only
.03 below today's SP close).
That's just my opinion, do your own DD.