In response to questions from shareholders concerning the private placement of up to $6.9 million and why it did not happen on a timely basis, the issue is due to the timing of when the Company filed for price reservation with the TSX combined with the later change in the lead investor.
The filing with the TSX to reserve the pricing for the $6.9 million placement was done on May 4. On June 4 we press released the private placement and on June 11 the new lead investor submitted his Personal Information Form (“PIF”).
To date, his PIF is still under review, but as the lead investor didn’t forward funds to be held in trust at our lawyers by the TSX mandated date due (due to his desire to have TSX approval for the PIF in hand prior to forwarding funds), we missed the price reservation date. Note that currently we have approximately $700,000 held in our lawyer’s trust account from our investors waiting for our reapplication for a placement.
We will reapply to the Exchange in the near future with pricing based on the prevailing market price at the time of filing.