RE: Two Very Important Questions:Does management have confidence in the upside value of CGX?
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Here is the answer. They participated in buying under the prospectus.
Lennox-King bought 500k shares
Hermeston bought 100k shares
Clarke bought 75k shares.
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So 675k shares in total, for an investment of close to $500,000 at
.70 per share. These are not options. These are purchases of shares, on top of their existing options and holdings.
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As for why CGX had that huge private placement, it is obvious that they had to, and it was priced as high as they could. They had to do the PP because if they fail to get a well spud by the New Year they are at risk of losing the Corentyne PPL. And they had to raise enough money to enable them to do the 3D on the other prospects so that they can get a second well spud quite soon.