|non-brokered private placement (the “Offering”), raising aggregate gross proceeds of $1,100,000 through the sale of 9,166,666 units (each a “Unit”) at a price of $0.12 per Unit. The Offering was oversubscribed by $350,000. Each Unit consisted of one common share in the capital of the Company (a “Common Share”) and one whole common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one Common Share for an exercise price of $0.15 during the first 12 month period after the closing of the Offering and $0.17 during the second 12 month period|
Mr. Ernesto Echavarria, a director, insider and a control person of the Company (as defined by the policies of the TSX Venture Exchange) purchased 4,791,666 Units. Subscriptions completed by insiders in the Offering, including the subscription by Mr. Echavarria, constituted a “Related Party Transaction” under Policy 5.9 of the TSX Venture Exchange, which adopts Multilateral Instrument 61-101 (“MI 61-101”) as a policy of the TSX Venture Exchange. In completing such transactions, Copper Fox relied on the applicable exemptions from the valuation requirement and minority security holder approval requirements available under Sections 5.5(a) and 5.7(a) of MI 61-101, respectively, on the basis that the participation in the private placement by insiders did not exceed 25% of the Company’s market capitalization.
So Ernesto's participation is very different than that of the regular shareholder if you read his conditions.
That said the dilution grew eroding individual share value. but at least it signifies they have no intention of throwing in the towel. And that along with the insider purchases should offer some consolation to existing shareholders A glimmer of lite at the tunnel.
s end. Cheers