FinancingYes more dilutive financings....11 cents and warrants at 16. As per the further release tonight, max amount of money they are raising is a combined is $1,000,000.
PharmaGap Completes Initial Closing of Private Placement of Equity Units for $835,725-Update
2 hours ago - ACQUIREMEDIA
OTTAWA, ONTARIO -- (MARKET WIRE) -- 02/24/11 -- Pharmagap Inc. (TSX VENTURE: GAP)(OTCBB: PHRGF)("PharmaGap" or "the Company") wishes to update its press release dated February 23, 2011. It is expected that the final closing of the private placement announced on February 23, 2011 will occur on or about March 11, 2011, and that the private placement, if fully subscribed, will result in gross aggregate proceeds of $1,000,000.
So likely another $150,000 in the 2nd tranche.
Not an ideal situation, but way back when I did an estimate using 10 cents to see how many shares would be outstanding once I think a deal could be struck, and to see how far we could get before hitting 200,000,000 shares fully diluted.
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?s=GAP&t=LIST&m=29116571&l=0&pd=0&r=0
The good thing about this financing is that there weren't that many players involved, and they are getting into stronger hands. We should see a release in the next little bit to give us further info on who, and how many hands (via SEDAR).
So where does the $1,000,000 get us to? Given the need for more cash with the amount of testing that is currently underway, and to be underway....my guess would be this cash takes us to August.
Warrants will now be out there at 16 cents, but won't be able to be exercised until the latter part of June. My guess is that we will see warrants being exercised between June and August (and onward) from the 16 cent warrants.....Keep in mind that Bryden feels very confident that the share price will be at least 14 cents in June (via the guarantee to the PP in November). I think with the warrants being exercised, we will push the need for capital out until the Fall.
Way back in the Fall on a conference call, Bob did make mention of possible big funding partners lurking....I think it is only a matter of time until they fall into place. I think that as we finalize the initial cancer target, the funding will take care of itself. As the price appreciates, I think the parties involved will be able to come to an arrangement. This will mean further dilution, but we will be talking about long-term holders....and the game of PP after PP will be over. This is what we want, and this will be when we start to see sustainable increases.
We will see old GAP investors coming back here....Hopefully this makes more sense in the coming months.