this financing a bit better. This is not a regular debit financing or a simple private placement. These types of financing are done by substantial financial institutions or a sophisticated group of investors that want to be a part of building a company. These types of financing are typically used for quick growth projects.
These investors want to be a part of the growth by taking an depleting equity position. By depleting I mean as the project nears completion the equity volume becomes less and less. So over the course of the financing the share distribution become minimal near the end. At the same time the debt investors have taken a substantial equity position with the expectations of making a substantial profit.
In my opinion the average distributed share price to the debit holders of the financing will in all likely hood be in the $1.65 range. So for these debit holders to make a profit the share price will have to be substantially higher than that. Ya think we may see a 2000% return on investment within a year? I do!