K9 Gold (KNC.V) has closed a C$2.25M in a private placement priced at C$0.30 per unit. Each unit will consist of one common share of K9 Gold as well as a full warrant with each warrant allowing the warrant holder to acquire an additional share for C$0.40 within three years.
As the company immediately announced Eric Sprott would be taking down about 90% of the placement (upsizing the placement is still a possibility), the share price has reacted well as the Sprott-followers flocked into the stock. KNC is currently trading about C$0.50 which means the warrants of the recently announced placement as well as the C$0.50 warrants from a previous placement are now in the money and could help K9 Gold to fill its treasury again.
Disclosure: The author has a long position in K9 Gold. Please read our disclaimer.
