RE:RE:RE:Beating financing expectation will boost stocklscfa wrote RE:RE:Beating financing expectation will boost stockInstitutional investors who want to take a $250,000 (1.25 million shs.) or $500,000 (2.5 million shs.) position can not buy in the open market without driving the stock price way above the prospectus price of $0.20. The prospectus is their only option.
I agree with that. The financing is about 45.000.000 (!) shares at least.
There is no option for big investors to buy this amout at 0.20 $ average in the open market. They would drive the share proce up to 2.00 $ or more if they would try to do that, even if they would take a year to do that. Look at the shares trades average.
So: they price of 0.20 $ is really cheap, if you buy such an amount.
I speculate:
I think when they started they probably thought and hoped to attract canadian banks and privat canadian investors. For them, they needed to set the price so low because probably none of them would (as an investor) become strong enough to gain influence on the board of the company and so they would only see the risks and the potential.
Then two US funds entered the game, which management maybe hoped for but couldn't count on. But when this happened, it changed the hole game.
And maybe it made it more complicated (!) because:
Didn't they originally in their prospectus restrict the buyer side to be canadians ? Someone here on the board mentioned that.
And now US investers wanted to buy ? Didn't they need a permission by the canadian stock authorities to do that ?
Couldn't that be the reason, why the whole process took so long and they were not allowed to make public statements (which Cameron Chell gave some hints to in ghis emails when he said they were not allowed to make statements due to regulatory restrictions).
Speculation ! Reasonable ?
Someone in this board said it already:
I expect that the US investors will get a seat on the board and will have a longterm interest to make the company mega successful.
And when you negotiate about that, then You talk about business, not share prices, and how the new investors can help to make business successfull and who will benefit how much from that in the future. The investor then might become a partner in business and not just a financial investor.
We'll see. I Think, it's exciting.
:-)