So the shares were purchased at market value or close to it. As for the warrants they can be excercised at $2.10 over the next 3 years. Not great but atleast they didn't set them at $1.76:) Hopefully the new buyer has a good understanding of the value of this company and maybe some hands on knowledge to view the $2.10 as a great price 3 years from now. I would think he would expect a price of atleast $10 by then to make it even worth his risk. That would be less than a 5x return. Could be expecting more like a 10x which would make more sense. We will see. As for me I am waiting one more earnings call and then either staying for the long term or hitting the exit door. I am tired of all the promises that keep getting pushed down the road. It makes sense these guys worked for the U.S. government:)
LLEN got a loan in november from management ... now they had immediate need for cash and no time to sell registered shares ... so they structured a sale of "restricted" shares (shares who are temporarily unavailable for sale) .... the only ones interested can be only people close to LLEN itself .... no real "investors" ....
in my view, its - once again - a loan .... just a different dressing ....
PIPE transactions have two components. The first component involves the original issuance of the securities – i.e., the private placement of securities by a public company to one or more accredited investors in reliance on the statutory private placement exemption provided by Section 4(2) of the Securities Act and/or private offering exemption provided by Regulation D under the Securities Act. The securities sold in PIPEs may include common stock, straight or convertible preferred stock, convertible debt or a combination of these securities, as well as warrants that are issued to investors as a “sweetener.” Since they are privately placed to the PIPE investors, such securities are considered “restricted securities” within the meaning of the rules under the Securities Act.
Because the PIPE investors require resale liquidity, the second component involves the filing of a registration statement by the issuer to register with the SEC the reoffer and resale of the shares issued in the PIPE by the investors as named selling securityholders on a delayed or continuous basis in one or more transactions at varying prices (i.e., variable priced). Although the PIPE can be structured so that an effective registration statement is a condition to the closing of the PIPE, most PIPEs today provide for the filing of a registration statement with the SEC within some number of days after the PIPE is closed. Once the SEC declares the registration statement effective, the PIPE investors are then generally able to freely resell their shares in the trading market.
Does anyone have any idea why the company would need 850k dollars?
Is this an institution that picked up the shares or an individual investor?
The accredited investor must be pretty bullish on the companies future to be risking their capital unless their are restrictions on how long this stock must be held. Hopefully they don't sell the stock into the open market and hold onto the warrants as a free call option. This would make me fairly nervous about holding the stock.
Also can anyone direct me to a good website that charts the price of coal in China?
I know what you mean..this is taking much longer than I imagined...then again...I did not think we would have the meltdown in China stocks like we have, nor the hit piece from GEO, nor the acquisition of Ping Yi only to sell it. Finally, the climate change and pollution talk does not help either and makes holding a coal stock even harder!
Having said that...China needs coal....and coal that is safely mined. 2013 is "suppose" to be our year in regards to building out and according to ALL OF THEIR PR we should be over 1.5 million tons which is at least triple what it was last year (though prices are depressed). In addition they have started shipping wholesale coal and "may" get a much bigger contract later in the year. So, yes, the price needs to move to reflect all of this...the next CC and really the final one for fiscal 2013 will be crucial......
Good luck to you....and I wonder if they are using the extra money to build a new washing facility?