Kdrdyledetas.
- Why do you assume that the S.I.s “know something that we don’t “, implying that they had “inside information “ which was the reason for their taking up those placements?
If you just take a look at the sales history after, let’s just take the last placement, you just might find the real reasons. S.I.s have money, by definition, otherwise they wouldn’t qualify as a S.I.s, and their business is to make money. Quite basic, often, not even knowing what the relevant company wanting their money does and they love to get their money back, with a profit, as quickly as possible. They have no “loyalty” to the relevant company, usually, only to the broker who gives them those opportunities!!
That last placement saw $1.65 million raised from those S.I.s from 276 million shares that cost .006 cents, but, here's the icing on the cake, included, 92 million options that cost nothing.
The sales history strongly supports the probability that all of those options were sold fairly quickly for at least .002 cents. That would have returned $184,000.
The 276 million shares have also probably all been sold by now, and let’s be really conservative here, let’s give them an average of just .0065 cents. That would have returned $1,794,000 making a combined return of $1,978,000, or, $328,000 more than they “invested”.
Now, this is relatively simplistic, but, close enough for you to try to understand how the placement “system” works in reality. That $328,000 is nearly spot on a 20% “profit” on what those S.I.s paid!! 20% in less than 9 weeks!!!
THAT’S why S.I.s take up placements!!!! PROFIT, quick profits, and as they succeeded with that in that last placement, they will be more than happy to do so again until the gravy train dies.
But, let’s see what the terms of this latest placement are and for what it is being used, before we can have a reasoned discussion, without guesswork, as to whether it is
good for shareholders, not, just S.I.s.
But, learn to live with S.I.s until this company can pay its own way.
