Critical Elements Lithium Corp V.CRE

Question?

[Wheeler]

Can management make a public offering if they have undisclosed information that could positively or negatively affect the share price? Obviously, they themselves cannot buy or sell shares if they have significant intel that they have not yet released, but can they set a price and raise money at that price? For example, can management go to the market to raise funds (as we are doing) if they knew that the permit was in the mail or if they knew that comex had made their recommendation?

[tinker901]

CRE will not make a public offering based on the expected permit. They can say that they believe there is no reason why it will not be delivered, and they can 'hint' that they have many NDA's. The permit will be 'in the mail' only when it is signed by the deputy minister and from that point it will be public domain. So everyone will know at the same time.

[Wheeler]

Agreed, but when I said the permit is in the mail I was speaking tongue-in-cheek. My question is, can a company make a public offering, as we are, if it has significant unreleased information of any sort, positive or negative? I really don't know the answer. It would seem to me that if the company has the ability to set the price of said public offering, it would be rather unfair to do so when

[tinker901]

My opinion is NO. They cannot go for a PP while withholding information knowing that it could affect the share price positively or negatively.  I am suire of that.