Winston Resources Inc (CNSX:WRW) recently announced that it would be conducting a non-brokered private placement, for over 2.85 million units, to be sold at $0.7 per unit. The company stated that it is looking to raise $2 million, through the transaction. It should be noted here that each unit is comprised of a common share of WRW’s stock and a warrant to purchase a common share.
The company further revealed that each warrant is exercisable at CAD$1.05 and is valid for a period of 2-years, from the date of issuance. Moreover, it has been revealed that Winston plans to use the proceeds as general working capital and for potential acquisitions. Earlier, WRW appointed Michael Young to its board of directors, in place of the outgoing director and CEO, Sean Bromley. However, the position of the CEO would be filled by another board member, Quinn Field-Dyte. The board thanked Mr. Bromley for his services and wished him well for his future.
Winston noted that the new director has over 20-years of experience, in varying capacities of executive management and is also a member of several company boards. He is also known for having served in both private and public companies and is also credited with having raised over $50 million, in capital, throughout his career. The company also stated that Mr. Young has a network of domestic and international investors that has helped him spearhead growth strategies, for several companies.
The recent appointment does make sense for Winston, as it works towards raising capital and implementing internal cost controls. However, unfortunately neither the appointment nor the recent capital raise program, seems to have helped the stock. One of the main reasons for this could be the fact that investors are still unaware of the future development plans of the company.
Winston Resources Inc (CNSX:WRW) declined by 2.74%, in terms of its share value, by the end of the April 24 trading session, to close at a share price of $0.71.
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