RE: NuLegacy Grows Geologic Team and Contracts for Five DrillsI am glad that future drilling is already planned. It indicates confidence.
Nonetheless, the following concerns me about the new release.
“At the request of the TSX Venture Exchange, NuLegacy clarifies that in connection with its $12.5 million private placement financing completed on January 19, 2021, the Company paid finder/advisory fees totaling $587,270 cash and 2,810,160 finder’s warrants to certain finders, each finder’s warrant entitling the holder to purchase one common share of the Company at a price of $0.20 for a period of 36 months. No shares were issued to finders in connection with the private placement. The Company also announces the granting of stock options to new employees and consultants and certain directors, officers and existing employees and consultants to purchase, subject to vesting, up to a total of 7,375,000 common shares of the Company at a price of $0.15 per share for a period of five years.” - Why did TSX request this? Shouldn’t it have been revealed in normal communication with shareholders and potential investors.
- Paying $587,270 in order to get $12,000,000 (4.9%) to find the money seems high.
- On top of that they gave the finders possible future value in the form of warrants.
- Shouldn’t the announcement tell us the names of these finders who were so valuable to warrant such largess?
- By giving more options to privileged directors, officers employees and consultants, who is looking out for shareholders?
- Were the finders one or more of the consultants who received options in addition to their warrants.