The Disastrous "ARRANGED" Private Placement;
On Oct 3, 2018 Team Yellow announced : zen.zenyatta.ca
"Zenyatta Ventures Ltd.... announces that it has arranged a non-brokered private placement financing to raise a minimum of $1.0 million (the "Offering") subject to regulatory approval. The Offering will consist of the sale of Units priced at $0.45 per Unit. Each Unit will be comprised of one Common Share and one-half of one non-transferable Common Share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to acquire one Common Share at a price of $0.60 for a period of 24 months from the date of issuance...................The proceeds of the Offering will be used to fund ongoing work on the Albany Graphite Project including environmental studies and metallurgical process development to collect data for an updated PEA as well as for general corporate purposes."
So on Oct 3, Chooch and friends clearly told the world that they had "arranged" to raise a MINIMUM of 1 million dollars through the sale of units for $0.45/unit.(1Unit = 1 Common share + one-half $0.60 Warrant)
There was radio silence for 44 days until Nov 16 when they announced: zenyatta.ca
"The company announces closing of a tranche of its previously announced private placement (the "Offering"). The Company raised approximately $583,000 in respect of this tranche which will be used to fund ongoing work on the Albany Graphite Project and for general corporate purposes".
Team Yellow claimed that this $583,000 was just "a tranche" which clearly indicates they expected to raise more funds before they "closed" the PP.
The market saw the failure and punished ZEN - Four new 6 year trading lows were set on the last 4 days of last week. The SP dive makes it impossible for Team Yellow to raise another "tranche"
Now look at the Nov 16 NR - The reference to: "environmental studies and metallurgical process development to collect data for an updated PEA" IS GONE.
Here is the Nov 21 filing to SEDI that revealed: stockwatch.com
Zenyatta Ventures 1,295,553-share private placement
2018-11-21 16:50 ET - Private Placement
The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced Oct. 3, 2018.
Number of shares: 1,295,553 shares
Purchase price: 45 cents per share
Warrants: 647,778 share purchase warrants to purchase 647,778 shares
Warrant exercise price: 60 cents for a two-year period
Number of placees: 14 placees
Insiders: Francis Dube, 100,000; Klees & Associates Ltd. (F. Klees), 100,000; Donald Bubar, 100,000; Artisan Investments Inc. (G. Fenton), 325,000
Finder's fee: $7,200 payable to Mackie Research Capital Corp.
Let's look deeper into the "arranged" PP .....1,295,553 units were distributed to 14 placees - 625,000 of those units went to 4 insiders
This means that it took 44 days to place 670,553 shares in the hands of 10 placees for proceeds of $301,748.85 MINUS the $7,200 "finders fee" for a Net to ZEN of $294,548.85
44 days to raise LESS THAN $295,000 - Team Yellow campaigned for the BOD with the promise of their ability to raise funding. It is difficult to imagine a more humiliating public failure!
Chooch and friends were able to raise lifestyle financing only. Does that sound familiar?
The last CEO was unceremoniously booted from office for the very same failure (even though he was more successful than the current disastrous effort).
Do the flock still believe that ZEN will be drilling a 990 tonne bulk sample this winter?
Will Team Yellow swallow their pride and try again with a PP below $0.30 cents? What if it also fails?
AE's inability to raise development funding used to be excused by Chief Cheerleader Choo-Choo who claimed that "visionary" AE was keeping his promise to minimize dilution.
Will the same excuse will work for Team Yellow now?
Choo-Choo???
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