RE:RE:Increasing The Private Placement ???I am no expert in investment banking but I believe that this last financing is different from the previous one.
The
January 21, 2021 news was a bought deal private placement whilst this
last one was a bought deal public offering.
Can they extend a public offering the way they can extend a private placement? I am not so sure, can anybody confirm? I guess we will know very soon
Looking up the definition of private placement, I understood why Redbull was not very happy about the previous round of financing:
Private placement is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors. Generally, these investors include friends and family, accredited investors, and institutional investors. But this time, I think it's different.
The other thing I was thinking of is that the underwriter of this financing will be acquiring all the shares and selling them on the public market with an option to acquire 15% more shares within 30 days of teh closing, that's why I don't like to rely on the anonymous info we see.
All brokers can be anonymous, any financial institution can play a good cop bad cop game with us, the system allows it.
For all we know, the underwriter of this deal can be anonymous shorting the heck out of us to take advantage of the situation, making money when the stock goes down and even more money when it hikes back up. From what I am reading it's a very common practice.
JMO
Cheers to all longs!