would anyone be paying .16+ today for this stock when you'll be able to buy it for .10-.12 with ease? Anyone buying today might want to look at the financing news from today. It MIGHT be a good pick up at .10 when it gets there, or just take part in the financing and get some warrants also...here's a couple snippets from the news, but from the looks of it, it'll potentially add about 500 million shares when all is said and done.
Under the terms of the proposed financing, Pacific Road will provide Luna with a $20-million senior secured note bearing interest at a rate of 10 per cent per annum, payable quarterly in arrears in cash or shares at Pacific Road's election. The note is required to be secured by first-ranking liens and encumbrances and is expected to mature on June 30, 2020, and if Luna were to enter into default on the note, the interest rate would increase to 15 per cent per annum. All outstanding amounts, including principal and any remaining accrued interest, will be payable at maturity. Luna has also agreed to provide Pacific Road with 200 million Class B common share purchase warrants, exercisable for a term of five years at 10 cents.
Private Placement
Pacific Road has also agreed to acquire $10-million of units in the capital of Luna in a non-brokered private placement. Each unit will consist of one common share and one whole Class A common share purchase warrant. Subject to receipt of all required approvals, the issue price of each unit will be 10 cents per unit. The Class A warrants will have an exercise price of 12.5 cents per Luna common share and will be exercisable for a term of five years.
It is anticipated that an offer will be made to existing shareholders, including Sandstorm, and to new investors, to participate in the concurrent equity financing of units on the same terms of the private placement for up to an additional $15-million, subject to compliance with securities laws.