There books were in order, now they have a stronger balance sheet. Was is it needed to raise some capital for the short term that is something that management knows. The only thing is that the insiders, management et al should have bought some shares on the open market in my opinion. That would have shown a better level of confidence to the general market & the shareholders, been here for awhile & never have I seen the insiders et al buy on the open market. By doing it that way the long loyal shareholders which I'm in that group might interpret that the insiders et al wanted to buy but at their price, this is my opinion.
Will the market interpret that as a vote of confidence remains to be seen?
There are only two logical explanations that I see, the insiders money will go into the coffers & they must know that something is coming up in the not to distant future.
Dilution can be hard on the short term for shareholders but not having money to operate will be a business killer!
Was it needed since it's to increase their working, last quarter they had 775k cash & 2.6 millions in working capital?
AeroMechanical Services Ltd. Announces Non Brokered Private Placement
AeroMechanical Services Ltd
AMA9/30/2009 3:40:00 PM
CALGARY, Alberta, Sep 30, 2009 (BUSINESS WIRE) --
AeroMechanical Services Ltd. (AMA) is pleased to announce the terms of a proposed non brokered private placement: up to 4,175,000 common shares are to be issued at a price of $0.40 per share, for aggregate consideration of up to $1,670,000. The proceeds will be used to increase AMS' working capital. The shares under this private placement are to be sold to a private capital group out of the United States and some insiders and employees of AMA. All of the common shares issued pursuant to this private placement are subject to a 4-month hold period. Completion of the private placement is subject to the final approval of the TSX Venture Exchange.
About AeroMechanical Services Ltd.
