WHAT IS AN "ARRANGED" PRIVATE PLACEMENT?
On Apr 13, 2017 CCB announced an "arranged" non-brokered PP ..... canadacarbon.com
It spelled out the price per unit, what type of shares (flow-through or not), the number of shares in each category and what the funding will be used for..
The NR indicated that the first tranche was already closed and that the second tranche was scheduled to close on or about Apr 26th.
That is what an "ARRANGED" PP is. - The funding has already been committed to the issuer by one or more sources of funding on the day that the NR announcing the PP is filed.
Contrast that with ZEN's recent "ARRANGED" PP ..... zen.zenyatta.ca
"Thunder Bay, ON – October 3, 2018 Zenyatta Ventures ....announces that it has arranged a non-brokered private placement financing to raise a minimum of $1.0 million ... subject to regulatory approval......"
So, the NR clearly tells us that they had $1,000,000 already committed on Oct 3rd and they were hoping for more from one or more uncommitted sources.
44 days later ZEN announced that a (previously unannounced and unknown) first tranche of ~$583,000 had been filled. It does not specify when any future tranches will be filled. Oddly, they did not CLOSE the PP.
Unless ZEN was lying about having already "arranged" at least 1 million dollars in financing, something happened, on or immediately after Oct 3, to make investors withdraw their committed funding.
The 2 probable reasons are: 1) Regulatory approval was not granted (which would mandate an explanatory NR) or 2) Failure to disclose material facts to those who had previously committed to funding the PP.
What was ZEN hiding? - A possible explanation is that Team Yellow failed to inform potential lenders of the multi-million dollar lawsuit filed by AE in September against ZEN.
Does it make sense that they would withhold that info if they could show potential investors that it is only an insurance bookkeeping issue with no effect on ZEN's financial stability?
If the reason for withdrawing committed funding wasn't the lawsuit - What was it?
What did the lenders learn that Dube and Friends have not disclosed to shareholders? Why aren't the Zenners demanding answers?
The Plot Thickens - Pass the Popcorn. |
