Monday, February 25, 2013

Keeping the lights on

I am noticing a wave of basic financing's on the Venture Exchanged designed to buy another year of operations. I understand that management of these companies are trying to give themselves time in hope of a better market a year from now.

From my point of view this is mostly a wasted allocation of money as these funds are just to pay rent and salaries and will not generate any upside to the current shareholder.

BTW I did not know that the Exchange will now allow financing's to be done at $0.01/share. Yikes!

Here is a sample of a buying another year.

Pantheon Ventures Ltd. has closed its non-brokered private placement of four million common shares at a price of 3.5 cents per common share for gross proceeds of $140,000. The proceeds from the offering will be used for general working capital and to pay outstanding debts of the company.
The common shares are subject to statutory hold periods such that they cannot be traded or resold prior to June 23, 2013.
The price of the common shares is below the usual minimum pricing guidelines of the TSX Venture Exchange and falls within the pricing guidelines in effect as a result of the exchange's temporary relief provisions extended until April 30, 2013, by the exchange bulletin dated Dec. 12, 2012.


Lakewood Mining Co. Ltd. has agreed to a non-brokered private placement of up to $174,000 of its securities, consisting of the sale of up to 17.4 million common shares at a price of one cent per share. The private placement is subject to acceptance for filing by the TSX Venture Exchange.
The proceeds from the private placement will be used to pay or provide: fees to the company's auditors, transfer agent fees and other accounts payable, option payments and exploration expenditures to maintain its mineral interests in good standing, estimated corporate administration costs for six months, the costs of this proposed private placement, the costs of a possible shareholder meeting, and unallocated working capital.

I have no position in either of these companies.

2 comments:

  1. How much do the exchanges make by NOT de-listing these zombie companies? Is there not a conflict of interest as what's best for the exchange may not be what's best for the market?

    ReplyDelete
    Replies
    1. Zombie juniors, I like that. Listing fees, don't want to chop off the hand that feeds. The TMX Group will do whats best for their shareholders.

      Delete

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