After 3 months of trying I finally got the details of the private placement announced in this press release:
peak-media.com
People at Peak had told me that they could not sell any shares until 1 year had passed. It turns out this is not that case and I was lied to. 93% of the shares are tradable in 4 months. Now Peak is going to say that they would not sell the stock but I have the insider trading for the past year and I will be posting that soon. Keep in mind all these shares were issued to raise only $360,000 USD. In any event, add this dilution to the 3,120,075 warrants that Elliott can exercise at anytime at $0.50 CDN and it looks like it will be very hard for this stock to ever go anywhere.
The private placement:
1,250,001 shares were issued @ $0.40 CDN attached with 1,250,001 warrants @ $0.50 CDN. Of the ten investors involved, three were directors. One investor was Canadian the remaining nine were non Canadian. Under the rules of the Alberta Stock Exchange, Canadian residents are bound by a one-year hold while non-Canadian residents are bound to a minimum of a six-month hold.
A substantial portion of this placement was a conversion of a secured debenture over the company where funds had been advanced to the company in July 1997. It was required that the debenture be converted to equity under the terms of the Elliott agreement whereby they placed $1,125,000 USD in the company.
The Treasury Order was issued on October 16, 1997. The 1,165,001 shares issued to U.S. investros would be tradable April 16, 1998 and the 85,000 shares issued to the Canadian investor will be tradable October 17, 1998. |
