If KMDC determines not to proceed with PP#1, KMDC shall still be obligated to provide the Phase 1 Fundingof $18mil so why are people selling? Just to help KMDC to get cheap shares?
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https://web.tmxmoney.com/article.php?newsid=69279070&qm_symbol=POP
Private Placement #1
PP#1 will consist of units (each a "PP#1 Unit") to be issued at a price equal to the greater of $0.25 and the lowest "Discounted Market Price" (as defined in the Policies of the TSX Venture Exchange [the "TSXV"]) of Petro One shares occurring during the 20 day period following the second trading day after the date of this news release; provided that if the PP#1 Unit price as so determined is greater than $0.35, KMDC shall not be obligated to consummate PP#1. If KMDC elects not to complete PP#1 due to pricing above $0.35, the Phase 1 Funding obligation will increase from $14,000,000 to $18,000,000.
The Agreement provides that KMDC or persons nominated by KMDC will subscribe for PP#1 Units. In the event that the lowest Discounted Market Price during the referenced 20-day period is greater than $0.35 and KMDC determines not to proceed with PP#1, KMDC shall still be obligated to provide the Phase 1 Funding. PP#1 is scheduled to complete on September 2, 2014. The Agreement provides that the proceeds from PP#1 will be used in part to pay drilling, completion and equipping costs for one horizontal well on Petro One's "J5" Milton land, estimated at ~$1,200,000, but that such well and 100% of production from such well be belong to Petro One. The balance of the net proceeds from PP#1 will be available for use by Petro One for its general working capital purposes