Signal Gold Inc T.SGNL

My Thoughts About The Financing

[DoumDiDoum]

My first thoughts about the financing was kind of negative as it is a direct consequence of the Argyle mess.  But after sleeping on it, I think that in the current context of "launching" Signal Gold and with all the shows and presentations planned until the end of Q1, this is a good bait for catching some big fishes and/or big names into the story.  It will help promoting the stock.  

I remember for example Eric Sprott participating in the same kind of financing package with Spanish Mountain Gold (SPA) 2 years ago (Spanish Mountain Gold Announces Closing of Oversubscribed Private Placement).  The first news about the private placement offering was on June 17th 2020 and 3 weeks later, SPA annouced that it was oversubscribed and Eric Sprott was involved.  Those big names are interrested when the SP is low and they have some warrants attached to the deal. 

If a big name is in for the financing, the SP will sky rocket to 1$ (and perhaps more) rapidely and I will not be surprised if the financing offer get oversubscribed.  It might even be possible that the "deal" is already done and yesterday's news is just a formality to comply to TSX rules.

GLTA

[Dipdip]

At least it's only a 4 million financing. To me it would have made sense to wait the month and a bit for upcoming drill results and news release update they should be putting out that Newfoundland operations are still on track if they are . I think short term this will hold the sp back . Will likely  use opportunity to buy more cheap shares . 

[DoumDiDoum]

Yes, it's kind of printing the price to sub fifties for a little while.  But like you said, they could have waited BUT this little offering will help in getting interest from some big players to jump in the train.

[GrumpyInvestor]

Wow, what a mess! I can't beleive the Argyle disaster has left the company so completely short on cash that we are now forced to have a $0,49 private placement.  Even if it's just a small financing, it still represents a dilution of about 6% when you take the warrents into account. I'm afraid such a small private placement is more likely to be filled by insiders than "

[VillaManya]

I agree with you entirely Grumpy..........explains the manipulated decline in the shareprice.  And it will almost certainly be filled by friends & associates who for some reason need rewarding. I shall be so angry if the Q2 numbers, especially for June, show a turnaround as it will definitely make this PP superfluous. On the worrying side, it could be that Q2 numbers are going to be

[DoumDiDoum]

Financing raised to $6M ... it means it was oversubscribed and that some new players might be in. Also, it fits the SPA scenario I suggested above... let's hope I'm right!