That sucking sound is from Aquila....... Sad, that this is called "good news". Did you read it? Did you understand it? They need to prime the pump as they are almost of of cash and this gives the illusion they are capable of selling stock. This "placement" says up to $720K - meaning it could be less. These funds will be used for "General working Capital" meaning it pays the rent and allows them to "focus" on what language they plan on using to rehash what they already announced. This "placement" is funded in part by persons within Aquila... Basically priming the pump as they probably couldn't get enough money on the open market. It dilutes existing stocks. Add this to the 1MM owed the new CEO and the outstanding stock and the outstanding option obligations - diluted and they can still issue and sell an infinite amount of additional stock. Does anyone understand common business sense? No one that buys this stock does and that's a fact. From $2.58 a share to $0.12 cents - Ouch!
Aquila news: 4/1/2013:
Aquila announces a private placement of up to 6,000,000 units at a price of $0.12 per share representing gross proceeds of up to $720,000. Each unit is comprised of one common share and one half common share purchase warrant. Each full warrant is exercisable into common shares of the company at a price of $0.20 for a period of 5 years from the date of issuance.
Proceeds from the offering will be used for general working capital purposes allowing management to focus on completing structural and legal changes necessary to further development of its Back Forty Project while refining its exploration strategy going forward. The Company also intends to use funds from the private placement to complete an updated Preliminary Economic Assessment on the Back Forty Project using data from its recently announced NI 43-101 resource update (see press release dated February 4, 2013).
All securities issued as part of the private placement will be subject to a four month hold period from the date of closing. The offering is subject to approval of the TSX Exchange. The Company may elect to pay a finder's fee on a portion of the funds raised. Certain of the Company's insiders and directors have committed to participate in the private placement.