Harvest Gold (HVG-V) @HRA-Coffin When I say something is a "cheque swap" @MiningBookGuy I mean that the program is "sort of" self funding. The company doing the promotion buys X dollars worth of placement, enough to cover the promotion campaign they are doing, and the company turns around and signs an agreement with them for a promotion for the same amount any pays for it immediately. The company being promoted doesn't have to use "existing" funds to pay for the promotion, which is a big plus in the case of $HVG because they didn't have that much to spare.
You could argue, I think, that this sort of deal implies the group doing the promotion has some faith things will work out. In essence, they are not getting paid the full amount, as they are just giving a cheque to the company with their right hand and accepting a cheque in the same amount back in their left hand. They do, of course, get the shares and warrants they paid for in buying the placement to cover their program for free, and they will have whatever the profit margin is on their program to lower the effective costs of those shares. Still, they won't make a lot on it unless they make money on the stock too.
The potential down side-well worth remembering - is that this also means its highly likely the promotion group will be selling their stock at the first opportunity. I guess this program is being done, in part, to get the warrants you mentioned exercised. I thought that was an odd thing for Rick to do, to be honest. It just adds a bunch more fairly cheap stock to a deal that already has no shortage of it. I like the project but have had trouble getting past the share structure at HVG and the warrant repricing didn't help. $HVG
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