Opportunity Knocks!5 Oct 2016 14:45
Private placement is an issue of stock either to an individual person or corporate entity, or to a small group of investors. Investors typically involved in private placement issues are either institutional investors, such as banks or pension funds, or high-net-worth individuals. For an individual investor to participate in a private placement offering, he must be an accredited investor as defined under regulations of the Securities and Exchange Commission (SEC). This requirement is usually met by having a net worth in excess of $1 million or an annual income in excess of $200,000.
(So this individual will be wealthy & wants to see coy make a success. He will not sell at this low price
Chairman and CEO, Richard Poulden, said:
"We are raising this funding to use for general working capital purposes and exploration. Our debt facilities are primarily limited to supporting the trading operations. The shares are being placed with a strategic investor who has been a long term supporter of the Company").
Important bit.
If the motivation for the private placement was a circumstance in which the company saw an outstanding opportunity for rapid growth that simply required additional financing, then the eventual extra profits realized from the company's expansion may push its stock price substantially higher.
We can see that buyers have taken advantage of sp under 1p with open arms.
Normally after placement you get good updates and that's what I am waiting for.
With Beaufort Securities involved, you will see plenty of good news.