RE: ajootianRight now the float is very tight, I believe its only something like 6 million shares or so. The remaining shares of the 21 M that are outstanding are owned by managment and are not in the float. This is a big reason why the stock has such little volume.
This latest offering will become free-trading on Feb 4, see PR pasted below:
Strategic Vista International completes $5,000,000 private placement
10/2/03
TORONTO, Oct 02, 2003 (Canada NewsWire via COMTEX) --
Strategic Vista International Inc. (TSX: SVI) (the 'Company') is pleased to report that it has closed its previously announced private placement of 4,000,000 common shares at $1.25 per share for total gross proceeds of $5,000,000. The net proceeds from the sale o
f the common shares will be used for general working capital purposes.
3,640,000 shares were issued through a syndicate of agents led by McFarlane Gordon Inc. and including Jennings Capital Inc. and Acumen Capital Finance Partners Limited. The agents received a cash commission equal to 5% of the gross proceeds from the private placement of 3,640,000 shares. As additional compensation, the agents received compensation warrants to purchase up to 254,800 common shares at an exercise price of $1.25 per share for a period of six months expiring April 2, 2004. The Company issued 360,000 shares on a non-brokered private placement basis at $1.25 per shares.
The 4,000,000 common shares issued pursuant to the private placements and any shares issuable upon exercise of the compensation warrants are subject to a restricted period for resale expiring February 3, 2004.
Commenting on the completion of the private placement, Bernie Klein, Chairman and CEO of Strategic Vista International Inc. stated 'We are pleased with the response we received from institutional investors and look forward to working with this new and expanded shareholder base. We also look forward to continuing to build the Company with the proceeds we received from the issuance of these additional shares.'
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On or about 2/3/04, I would expect a lot of the stock that got issued in this offering to find its way on the market as the PP investors take profits. The stock will probably be up at least 50% from its issue price by then, so they will want to take some money off the table.
For the long-term investors in this stock, this additional stock coming into the float will do wonders for the stock, increasing the daily trading volume, which would entice more big-money types to take positions in the stock.