RE:Merger DD: Pre-Merger Financing Is Good For SGNL"Using these two scenarios, it’s easy to understand that if someone must pick only one of the two financing to participate in, it’s better to participate in SGNL’s one. However, for existing SGNL shareholders, you must add 30% more shares to your current position if you do not want to be diluted and benefit from this leverage."
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DoumDiDoum, you have neglected to take into account that the financing for Nexg is flow thru, which has a major tax advantage vs. the Sgnl offering. The warrants for Nexg are also flow thru warrants. So it's not quite apples to apples.
The risks if this deal falls through are much more for SGNL if the deal falls through, than it is for NEXG. So SGNL investors do deserve a small premium for that added risk.
I would suggest that buying SGNL in the placement is not as good of a deal as participating the NEXG financing with flow thru.