Pounce Technologies Inc. V.POI.H

RE:RE:RE:RE:RE:RE:RE:Apparently news tomorrow

[Leafs4Life]

That's a good point. 

Logically, they would have set the new price when they secured the loan, which means the new price will probably be around 14 cents.

The price action at the close today looked like someone trying to defend the share price, possibly because they know there will be some "news" tomorrow.   

I am still curious to see if they can attract interest in the PP at the new level. In light of what you said and the rumour of news, I think the loan can be interpreted in a couple of ways.  

1) The deal is done in principle but they don't have access to the capital until they get TSX approval. The loan is in place to cover the working capital shortfall just in case the TSX hold-up takes longer than expected.
OR
2) The deal is not done but they think they will close the deal. They will get access to the loan on Feb. 5th only if it looks like there is interest in the PP at the new price. If there is no interest, the loan will not be executed (and the shareholder gets to keep $40k for his trouble).  If they think the deal will close on Feb. 5th they access the loan to maintain working capital until they get access to the new funds.