Spock has secured a private placement and Members have been given first choice to participate
This is 90% Subscribed already . I am posting it here for non Spock members who may be interested
This is another lever of service offered by the Spock Miner’s Matrix over and above Spocks Rocks Picks.
There will be more opportunities such as this going forward .
There is a non-brokered private placement for a TSXV listed company, currently in progress. General details as follows:
About 90 million shares currently on issue in the company
Current Market cap about $CAD 4 million on market
New shares to be issued in the PP about 10 to 12 million
Pricing: $CAD 0.05 per new share, plus half a 2 year warrant strike price $CAD 0.075
New shares and warrants will be restricted for 4 months and 1 day from issue (cannot be traded on the TSXV secondary market)
Total amount to be raised in the PP circa $CAD 600,000
This is non-brokered, and the company has commitments for about 30% of the offering. Which means $CAD 400,000 is available to SpockM subscribers on an exclusive basis, on a first come first served basis.
I will be taking up a 2.5% position size for the SpockM portfolio in the PP or $CAD 15,000 for 300,000 new shares plus 150,000 warrants.
Given the company gold assets, the current market cap seems very cheap in comparison with its peer group, with similar assets in the region. The funds raised are to complete a 2000 m focused drill program, on their highly prospective gold project, commencing in September. Substantial good news flow is anticipated from the drill program. Have checked out the company thoroughly and the management, and the assets, and it presses all the right buttons. The company has no debt.
This is an exclusive ground floor opportunity in the primary market, for those who are interested to participate. As I said, the SpockM portfolio will participate for 2.5% position size.
For those interested in more details on the company and the offering, please email me directly at email@example.com. The company would like to firm up commitments in principle by the end of this week, with paperwork and funds remitted direct to the company in early August. They wish to wrap the PP up by mid-August to start the drill program in September.
Please keep this confidential and in-house. Thanks.
Note this is a restricted non-brokered private placement to non-retail accredited investors. Therefore, there is no prospectus. Subscription paperwork will be provided by the company.
I have been receiving good email interest.
Over the next day I will reply to each email, with subscription docs, with instructions; and also an overview of the company and the opportunity here off a current $US 3 million market cap. Basically, its all blue sky from here!
I shall put together a book build against each interested party. Once the book is filled for $CAD 400,000, it will be closed. Paperwork submitted. Funds wired to company lawyers trust account.
Once the PP is closed it will be announced to the market. Then the drill program will commence using the funds, in September. I expect the stock to get a re-rating as the news flow gets around the secondary market. A market cap of $US 10 to 15 million, post Phase 1 drill program, could be conservative. That’s a 3 to 5 times uplift, from the PP pricing, potentially.
The warrants are the “kicker” in a private placement.
in this case the strike price is 0.075 and they have 2 years until expiration.
For example, if the shares are trading at 0.075 in a couple of months time, the warrants could be trading at say 0.05, as they have “time value”. They cost nothing in the PP. If they were all sold then at 0.05, in the market, the profits reduce your PP entry price by 50%. (Edit: Correction, these warrants are unlisted, which means they can be exercised, but not traded in the market).
Another example, if say in one year the shares are trading at 20c, you could elect to exercise the warrants at the strike price of 0.075. So you have purchased fully paid shares at 0.075, which are trading on market at 20c. That is, almost 200% profit on exercising the warrants.
So the “free” warrants provide leverage to your investment