Placing to Drill4 Aug 2018 23:37
When a publicly traded company issues a private placement, existing shareholders often sustain at least a short-term loss from the resulting dilution of their shares. However, stockholders may see long-term gains if the company can effectively invest the extra capital obtained and ultimately increase its revenues and profitability.
However, 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 such as a drill campaign, then the expected eventual profits realized from the company's expansion may push its stock price substantially higher.
Hence great news if jv or placing to drill