RE: 83M shares + 83M warrants You forgot to include the 6% owed to the Agents, plus the potential 15% overallotment.
The company should not have trouble raising this money. Hunter Hall, plus the deal the company made with the executive team (where the executives have to match a portion of funds raised) should have been sufficient to raise this money easily. There was no reason to make the terms of the PP so generous.
Jo has shown a lack of respect to shareholders. And then he has the gall to say that members of management are "demonstrating a strong belief in BlueScout" Really, Jo? What strong belief is that? Being able to buy shares below yesterday's market cost and still get a 10c warrant to boot? Wow, they are really taking a big risk there... What a farce. Think about it, those warrants could be in the money tomorrow on good news. How is that showing a committment to the company?
Look, I'm not saying this stock won' t do well going forward, it still might. But if you're a shareholder, your existing shares just dropped in value by more than half. In no way can that be viewed as good news.