RE:Wonder what is the chances
Run for the hills........Private placement financing The company is concurrently announcing a private placement financing of ordinary shares at a price of 16 cents per share to raise up to $25-million in order to finance the acquisition purchase price and to provide working capital. In connection with the offering, the company has received commitments from two parties to backstop up to $15-million of the financing. One of the parties is arm's length while the other is a company controlled by Champion's chairman and CEO Mr. O'Keeffe. Mr. O'Keeffe has agreed to purchase up to 46,875,000 ordinary shares under the offering, subject to his right to engage dealers to find substituted purchasers to purchase all or a portion of such ordinary shares, and when combined with his current holdings, could own up to 19.95 per cent (16.44 per cent if the total amount of the offering is $25-million) of the aggregate number of issued and outstanding ordinary shares of Champion as a result of the offering.