RE:RE:RE:RE:RE:RE:... so sad..I believe that this deal, and others like it, are filled by a direct buy from the company's approved shares, putting more shares into circulation, and not from purchases on the open market. I invited correct on this, but with cinvincing evidence. Basher claims will be given the credence they always deserve.
In this form is an injectional of new capital in the form of debt carried by the Shareholder/Directors themselves; a great deal for a company whose Manager/Directors are confident about the company's future; but a foolish one if their own leadership and guidence proves faulty. Thus a very bullish signal.
Compare this with a Public or Private Placement or Debenture offering which usually offers a significant discount from SP Market Value, extra warrants, and/or interest, and commissions to the brokers arranging the financing. Theralase (TLT) just got hammered from .44 to .25 on a public placement where outside investors whose first interest is personal profit at the expense of the company's prospects.... and it shows.
So I vastly prefer this kind of financing which keeps the risk/reward squarely on those who have been leading the company and therefore continue to have an even greater interest in its outright success. As retail investors, we may envy their positions, but we also benefit from their success.
And I have yet to find any company that does not reward their directors and management well, and often way too well.... even when the company may be underperforming. So, agian, I find this form of reward to the leadership to be the most closely aligned to (rather than eroding more severely) our interests as retail shareholders.
Highly-motivated to find other potitions I can sell. Timing bad for me until Convalo hits $0.25 or Bombardier breaks $2.15.... but I will not wish on fellow longs a contiuining of this ridiculopus decline in value. Read my posts after the 14-Nov FS. The market is making an astonishingly bad read of these numbers. If the idiocy persists, we longs may have an awesome buying opportunity over much of the next two months, until the next FS slaps the market across the face.
GLTAL, CYD
oceaneleven wrote: In addition, the Company intends to complete a concurrent non-brokered private placement of Common Shares with two (2) directors of H2O Innovation who are US residents, one of which is Richard Hoel (who currently holds 10.18% of Company's common shares) as well as Frdric Dugr, director, President and Chief Executive Officer, Marc Blanchet, Chief Financial Officer, and Guillaume Clairet, Chief Operating Officer, at a price of $1.20 per Common Share, for aggregate gross proceeds of $1.6 M. Subject to securing all necessary approvals, the Company will extend to Frdric Dugr, Marc Blanchet and Guillaume Clairet, individual loans in an aggregate amount of $1.25 M (the "Loans"), in order for them to acquire such Common Shares, which loans will bear interest at a rate of 2.5%, be secured by a pledge of the acquired Common Shares and be reimbursed upon predefined repayment conditions (the "Additional Placement" and, together with the Underwritten Offering, the "Offerings").
The participation of insiders of the Company in the Offerings, as well as the loans by the Company to certain officers, constitute "related party transactions" as defined under Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions ("Regulation 61-101"). The Subscription Receipts and the Common Shares, as the case may be, issued to insiders will be exempt from the formal valuation and minority shareholder approval requirements of Regulation 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25% of the Company's market capitalization.
The Common Shares acquired by Frdric Dugr, Marc Blanchet and Guillaume Clairet pursuant to the Additional Placement will be held in escrow until such time as the Loans have been approved by the disinterested shareholders of the Company.
Read more at https://www.stockhouse.com/news/press-releases/2016/07/13/h2o-innovation-enters-us-operation-and-maintenance-market-with-the-acquisition#0f126EXgbQjTBkEJ.99