Latin Metals Inc. (OTC: LMSQF) Stock In Focus After Recent News

The announcement of a fund-raising initiative is almost always seen as a major development by investors, and in light of developments from last Friday, it may be a good time to take a look into Latin Metals Inc. (OTC: LMSQF). On January 26, the company announced that it would have a private placement of the non-brokered nature for generating gross proceeds to the tune of $0.7 million.

The company would offer 10,000,000 units for the subscription price of $0.07 each in order to raise the gross proceeds. Each unit would be made up of one common share in the capital of the company and half of a common share purchase warrant.

A whole warrant would entitle the holder to pick up one common share in Latin Metals for the price of $0.15 up until 24 months since the date of issuance. It was also notified in the news release that some of the officers and directors of the company would subscribe to around 4,300,000 units in the offering. That would lead to the generation of gross proceeds of $30,1000.

The securities that would be part of the offering would also be subjected to a hold period of four months and a day in Canada. It ought to be noted that the private placement would only go through following the award of all the requisite approvals. That would also include the acceptance to file the same at the TSX Venture Exchange.

The company further noted that participation by officers and directors of Latin Metal in the private placement would be regarded as a related-party transaction. Latin Metals stated that the new release did not constitute an offer to sell any of the concerned securities in the United States. It remains to be seen if the stock gets any traction among investors today.