RE:TGIF Announces Closing of Non-Brokered Private Placement For me this is not a good raise. They must have needed that extra million. They are receiving a 10% from some guy, and giving him 4,000,000 25c warrents which should be in the money in the next couple weeks. In addition, the owner of the debentures can convert his original million into 4,000,000 shares at either the closing price of the maturity day or again... 25c.
So basically this guy gets a guarneteed 10% interest return on capital. His option is that if this company jumps he can convert the million to 25c shares and buy another million worh of 25c shares. He gets about 2 years to watch this company grow before he decides if he wants the shares or the 10% interest. He can get forced to converting to shares if his investment doubles befor the 2-years.
Personally I don't think the warrents issued were necessary for this deal. Oh and also they paid about 12,000 in cash anw warrants to an arms length party another 1.2% on this deal. They must need this money, that they werent able to get from the last raise pretty badly. I hope it brings a significant return to make up for the dilution.
Does anybody read the issuance differently?