Gnomestar Craft Inc VDQSF

RE:RE:Can't wait to see

[SizzlinSteaks]

I have to agree they could have struck a much better deal. The initial terms with Cannacord (pasted below) were much better. It is understandable that there was a summer slump and they couldn't close the deal with Cannacord but why accept a deal for less when the share price on VP as well as most MJ plays have gained traction. They could have easily gone back to the market and annouce a PP that was open to the public for the same terms. Investors would have been all over it. Heck I sure would have taken part given the opportunity, but it seems retail wasn't even given a chance. Regardless, this is all water under the bridge now. The fact they secured $2 million should be viewed as a positive regardless.... and 8 million shares is not a great deal. Lets just hope the terms are much better the next time around or hopefully they can finalize approvals and start generating revenues to reduce or eliminate the need for additional cash.


June 20 th , 2017 / TheNewswire / Vancouver, British Columbia – Vodis Pharmaceuticals Inc. (CSE: VP / FSE: 1JV1) (“ Vodis ” or the “ Company ”) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. (the “ Agent ”) to undertake a private placement of units of the Company (the “ Units ”) at a price of $0.28 per Unit for gross proceeds of up to $5.0 million (the “ Offering ”). Each Unit shall consist of one common share (a “ Common Share ”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “ Warrant ”). Each Warrant shall be exercisable into one Common Share at a price of $0.45 for a period of 24 months following closing of the Offering, which will accelerate in the event that the Common Shares trade at a price of not less than $0.90 per share for 10 consecutive trading days.  The Offering will be made on commercially reasonable efforts fully marketed private placement basis.

blueboy wrote: Sure it's nice to see the PP closed but there are THREE problems with it:

1) the price of the shares is only .25 - far too low, given the current share price.  We will likely see the share price pull back pretty quickly tomorrow at the open

2) the warrants are not only too cheap, but they are for 5 years where most MJ companies issue warrants for only two years.  Absolutely ridiculous, in my opinion.  That is, unless the warrants start trading (which they should, since they will likely be around for a VERY long time).

3) There is no clause to trigger mandatory early execution of the warrants, as you see in most of the MJ stock PP's now (something like "if Vodis closes above .50 for 10 consecutive trading days, then warrant holders have 30 days to execute the warrants or they expire).  Not only does this clause get VP the warrant money quicker if the share price rises and stays up, but it gets the warrants off the books sooner instead of kicking around for the full 5 years.

I know they need more money to continue the work to continue expanding, but given the popularity of MJ PP's right now, I think they could have done A LOT better with this PP, both with the price and with the terms.

BB