9.8¢ or 7.5¢ per share, Good deal for themHere is how I got that;
market cap = 10,100,000$ at 15¢ per share = 67,333.333 shares ( at 11:00 aug 7)
That is before consideration for the PP and will correspond to 45% of all shares after the PP.
100% of all shares will be 149,629.629 shares.Th private placers will have 82,296,296 shares which will have cost them 8,100,000$, therfore the per share cost will have been 9.84¢.
That was without consideration for the warrant. In effect they will have 1.3073 shares and even a greater %age of the company once they are exercised. 9.84¢/1.3073 = +/- 7.5¢ per share
Some questions arrise:
Will these new shares be subject to a lock-up period ?
Will there be a cost to exercise a warrant ?
What other financial instruments exist already ?
debentures + whatever
and what are their terms ?
I just hope that this is not an example of creative finances which results in the initial shareholders being run over by a big truck. Only time will tell.
The NR's lack of detail looks somewhat amateur to me.