Post by
fbedard29 on Apr 05, 2022 1:09pm
Abcourt private placement
Hi have any stockhouse posters considered investing in the private placement.
You have to be a qualified investors( $1m value or, or).
If Abcourt management are ready to invest 25% of the $1.5m pp they must have faith in the future.
Just a fast calculation of what could hapen.
If $10k invested at 0.10c = 100k shares + 100k warrants at 0.15c due in 3 years.
If the share price is at 10c in 4 months you lose nothing or if shares decreases to 8c you loose $2k.
If in 3 years the share price is 0.15c you make 50% of $10k= $5k
If the share price is at 20c in 3 years you make
100k shares x 20c= $20k- $10kinvested= $10k profit + 100k wt at 15c = $20k-$15k invested= $5k profit = $15k profit total
If shares are at 25c 100k x 25c= $25k- cost of $10k = $15k profit and 100k wt at 25c= $25k- cost
$15k= $10k profit
net result if shares are at 25c in 3 years you would make $25k profit .
All that for a $10k investment that could depreciate by -$2k if the share price decreases to 0.08c or
$25k gain if share prices increases to 25c.
Think about it if you qualify.
Fernand
Fernand
Comment by
mariners13 on Apr 06, 2022 2:57pm
I recognize the value of warrants, but there is something to perhaps just purchasing at .09 right now. Especially if one does not qualify for the placement.
Comment by
fbedard29 on Apr 06, 2022 3:23pm
True mariners13 if you buy at 0.09 and in 3 years it goes to 15c you make 67% but if you buy at 0.10c in PP and it goes to 15c you make 50% and if it stays at 9c you loose 11% . The PP is worth it if you think the share price will be above 16c in 3 years.