D asked in Business & FinanceInvesting · 9 years ago

What does this mean! so confusing? and more!?

Magindustries Corp. announced that the Company has entered into a letter of intent with TSC Capital Ltd. (TSC) in respect of a proposed investment by TSC in MagIndustries. Pursuant to the letter of intent, the Company has agreed to permit TSC to conduct due diligence in respect of MagIndustries until March 1, 2011. Following completion of this due diligence period and provided that TSC is satisfied, in its sole discretion, with the results of such due diligence, TSC and the Company expect to enter into a subscription agreement pursuant to which TSC (or its nominee) will, subject to receipt of customary regulatory and other approval, agree to purchase, on an exempt private placement basis, 222.4 million units (Units) issued by the Company at a price of CAD0.335 per Unit (Offering). The completion of the Offering will be subject to receipt of all necessary regulatory approvals and the approval of the Company's shareholders to be obtained at a special meeting of the shareholders which the Company anticipates calling in the first quarter of 2011.

I'm new to investing as i'm sure you can tell, and the current stock price is at 0.25, if this approval is accepted and all goes as planned will it drive the price up to at least TSC will purchase it at 0.335? So this would be a good investment (well as good as speculative investing can be..)?


2 Answers

  • Anonymous
    9 years ago
    Favorite Answer

    If the stock price is .25 a share, then this is speculation more than investing. Magindustries Corp is hoping TSC will invest in the company and they are making their financial matters an open book to them. If they are interested, there would be a shareholder vote, and the terms would likely be more than just an investment by TSC. There's no way to predict if this is good or bad based on your facts alone. It very well could be that Magindustries Corp is near the abyss and looking for a savior

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  • 9 years ago

    You could buy some shares of the stock now and then sell them near the end of February on the hope that the share price will rally up to around 33.5 cents per share. If the deal falls through on March 1st of next year, you'll already be out. You'll never have as much information as you want, you have to be able to tolerate uncertainty and you must have a plan that you can stick to.

    Source(s): Steve Ballmer
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