What are the proceeds being used for? You assume that the proceeds of this pp are to go to general and administrative use...Without using any default logic, how could you come to that conclusion?
there are several possabilities in my mind...1. They needed money quickly to pay off a creditor or for the final part of the FS, or to negotiate with the Chinese with regard to the debenture..As there are two closings rather than one, it does seem like they needed cash quickly, particularily this close to the release of the DFS.
On the other hand, this might be a nice gesture to some folks to pick up a quick hit. I wont call it payback, as that would be an illegal thing to do..But the timing is a bit odd.
The agent here got a very nice commission, both in cash and warrents..Depending on the size of the presidents lists...3.5-7% in cash, and the same in warrants.. A quick bump to 30 and the agent could be looking at about 15% commission...Even without it, a decent bit of cash for some phone calls.
It is a bit odd that with all the fluff NR's suddenly being put out, substantive information like the why of the private placement being issued at this time is a bit lacking...
Might be a nice upside, but I would not be betting the farm on it right now. Greed can be a terrible blinding mistake.
Only a few weeks to go and we should have some real answers not these silly NR's of late.