RE:Can anyone explain to me----Impalaman wrote: Why the company Tlt and Mackie would annouce a PP without a set price---What the Hell---I'm having sleepless nights trying to figure it out-----Anybody tackle that.
It is unusual. You'd think they would have a pretty good idea what the capital markets are willing to pay to fill the prospectus. Reminds me of a basketball player testing the free agency market to see what the market will bear. They way they are going about it it gives the impression that they aren't satisfied with the offers so far and are shopping around for something better. The fact that they included 5 year warrants when the trial is only scheduled to last 3 years may indicate a recognition that in order to secure the funds they will have to include some compelling incentives. The maximum discount a company can offer on the Venture for a PP is 25% but I doubt they will have to be so generous. I'm guessing 15% over the average sp for a 2 week period would be more appropriate but if they are able to strike a deal for the full $15 million then who knows if it could be higher.