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Bullboard - Stock Discussion Forum EarthLabs Inc V.SPOT

Alternate Symbol(s):  SPOFF

EarthLabs Inc. is a mining investment, technology, and media company. It provides strategic leverage to the metals and mining sector through investments, royalties and a full suite of data-driven media software-as-a-service tools and services, including CEO.CA, The Northern Miner, MINING.COM, Canadian Mining Journal and DigiGeoData. Its Financial Technology Division (FTD) business vertical... see more

TSXV:SPOT - Post Discussion

EarthLabs Inc > Offering closed successfully!
View:
Post by HenoftheWoods on Jun 02, 2021 11:33am

Offering closed successfully!

Now let's see if the "big guys" can exercise their magic and send the share price over 1$.

It is NOTABLE that SPOT management bought 350k$ of their own stock in this round of financing. Eric Sprott also added 3million to his already large position.

Am I the last "small fry" from the 15 ct days still standing? 

A very quiet board...

Cheers,

Hen

From the release:

Highlights include:

  • Exercise, in full, of the overallotment option of $1.5 million
  • Offering includes $3 million lead order from Eric Sprott, $1 million from Palisades Goldcorp and $350,000 from GoldSpot’s Management

Toronto, Ontario–(Newsfile Corp. – June 2, 2021) – GoldSpot Discoveries Corp. (TSXV: SPOT) (OTCQX: SPOFF) (“GoldSpot” or the “Company”), a leading technology services company leveraging machine learning to transform the mineral discovery process, is pleased to announce that it has closed its previously announced bought deal public offering pursuant to which GoldSpot issued 14,375,000 common shares (the “Common Shares”) at a price of $0.80 per Common Share, for aggregate gross proceeds of $11.5 million (the “Offering”), which included the full exercise of the over-allotment option.

The Offering was led by Canaccord Genuity Corp., as lead underwriter and sole bookrunner (the “Underwriter”). In connection with the Offering, the Company paid a cash commission to the Underwriter in the amount of $660,000, together with an aggregate of 825,000 broker warrants (the “Broker Warrants”). Each Broker Warrant entitles the Underwriter to purchase one Common Share at an exercise price of $0.80 for a period of 24 months from the closing of the Offering.

The Common Shares were offered by way of a short form prospectus of the Company dated May 28, 2021 (the “Prospectus”) in each of the provinces of Canada except Qubec.

The Company plans to use the net proceeds from the Offering for research and development, investment capital and general corporate expenses, as set out in the final Prospectus.

“This financing not only strengthens our cash position but demonstrates strong investor confidence in our innovative business model, our momentum and our growth prospects. Eric Sprott and Palisades Goldcorp were early investors and their lead orders in this financing are a testament to their support,” said Denis Laviolette, Executive Chairman and President of GoldSpot. “We are well positioned to capitalize on our global client pipeline while demonstrating our ability to successful execute on our acquisition strategy.”

Comment by CamPie on Jun 02, 2021 12:34pm
Seems weird to announce a buyback, do a bit, then change your mind and actually issue more shares instead. At least management is putting their own money in to do it.
Comment by HenoftheWoods on Jun 02, 2021 1:19pm
Yes, a bit weird, but personally I am happier that they raised the funds with strong institutions. SPOT is a growth stock... The infusion of cash will allow more flexibility in pursuing their growth strategy without cashing in on some of their investments. The raise was likely put together quickly. Considering the favorable terms to SPOT, I think they were approached by institutions rather than ...more  
Comment by CamPie on Jun 02, 2021 1:20pm
It does seem a bit sudden/unexpected. I wonder if an opportunity presented itself that they needed to act quickly on.
Comment by CountOfMeltedCrisco on Jun 02, 2021 6:26pm
The best time to raise money is when you don't need it.   Always. 
Comment by BCdude on Jun 03, 2021 1:44pm
Hi Hen, All of this is very good news. It's a testament to the business model and future prospects that Sprott, Palisades, and management took such large positions in this recent financing. I bought 20,000 shares at $0.16 last summer, but added another 26,000 at $0.40 the day the year-end financials were released. The fact that Spot wasn't on too many radars allowed me to buy them at this ...more  
Comment by HenoftheWoods on Jun 05, 2021 11:17am
Hi BCdude, Glad to hear you're holding on to your shares. I'm doing the same, for the long term. My position in SPOT has grown to 20% of my portfolio. I'm a firm believer in this company. Between the quality of the shareholder base and the business model, I see no reason to worry at this moment. I've now been a shareholder for 11 months.  Good luck with your ...more  
Comment by BCdude on Jun 05, 2021 8:26pm
That's a significant investment, but you are bound to be rewarded. For the record SPOT is now my largest microcap position, too, after selling all my KNR at $2.40. Kontrol had some worthy tech, but in the end the management team couldn't deliver.
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