RE:The private placement If the public demand for the securities is not broad, share issuers can choose private placement financing to a limited group of investors instead of using a prospectus.
When an issuer doesn’t use a prospectus, liabilities associated with a prospectus offering are avoided.
I think CRE is boarding big investors. One thing reassuring, Cantor did not have already shares. So they won't sell any in the market at a higher price to buy back at a lower price (1.10$). Stocks go down usually because of that reason. Last Friday the stock was less than 1.10$ . They could have negotiated at that time. This week we went up to 1.35$ down to 1.18$-1.20$ and back up to 1.30$. Since all private deals are done with a discount, the price of the issue seems normal. if you are trying to catch flies, you are literally going to attract more with honey.
CRE needed at least 10 millions $ (get out HELM liability + start to develop Rose project rapidly after permits received). They could receive around 22 millions $ like Tinker wrote. You have to give a little to attract that kind of money. It could have been at 1.15$, 1.20$ max. For 0.05$, I won't nourish any negative sentiment towards management. I see a company making sure that everything is in order before the storm. It is safe and prudent to do this now because we don't know how the market could react and that we want this project to go ahead no matter the markets because EV cars will sell so much that lithium (battery quality) will be the hotter commodity around.