PyroGenesis Inc T.PYR

I'll give a really simple example of why this is bad news

[tamaracktop]

Remember this.

It wasn't a year ago.

PyroGenesis Announces Closing of Brokered Private Placement of Convertible Debenture Units, Including Participation by CEO

 

T.PYR | July 21, 2023

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

MONTREAL, July 21, 2023 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (https://pyrogenesis.com) (TSX: PYR) (NASDAQ: PYR) (FRA: 8PY) (“PyroGenesis” or the “Company”), is pleased to announce that it has closed its previously announced “best-efforts” brokered private placement offering (the “Offering”) ... In connection with the Offering, P. Peter Pascali, President, CEO, and Director subscribed for C$2,000,000 of Convertible Debenture Units. The Offering was led by Research Capital Corporation as the sole agent and sole bookrunner (the “Agent”).

Each Convertible Debenture Unit will consist of one 10.0% unsecured convertible debenture of the Company (a “Convertible Debenture”) with a maturity of 36 months from the date of issuance (the “Maturity Date”) and 1,000 common share purchase warrants of the Company (each, a “Warrant”). Each Warrant shall entitle the holder thereof to acquire one common share (each, a “Common Share”) at an exercise price of C$1.25 for a period of 24 months following the Closing Date (as defined below).

That issue raised $3 million.

He bought $2 million of it.

Now the board has elected to reduce the excercise price of the warrants by 40%.

To at the money.

From $1.25 to $.75.

He has 2 million shares as of July 17th, at 75 cents.

The public who bought the issue collectively have one million.

I have sevral simple reasons why this is bad.

I'll give you one at a time for simplicity's sake.

Sell this pig.