Verisante Technology Inc. V.VRS

RE: RE: Outstanding Warrants

[gaserx2]

electricsockets. I realise that fact. It is a new private placement. But my opinion of PP's is that they are implemented and presented to certain money backers, who in a sense are lending financing to the ongoing operations of a company. These backers are generally awarded with an option to buy a 1-1 common share, but the greater incentive is they also receive an option of warrants to purchase additional shares of the company at a later date, generally a 2 year time frame. Investors who have the opportunity to participate in a PP generally view the company and anticipate that the share price will be much higher within the 2 year time frame. Thus allowing them a nice capital gain for their generous interim financing to the company. Otherwise why would anyone buy a PP. if the stock had no chance of moving higher than the PP, you might as well just buy and sell on the open market and take advantage of the wide price swings. IMHO.