The announcement of a private placement can often lead to a certain degree of pessimism among investors and that is what happened with the Jackpot Digital Inc (OTCMKTS:JPOTF) stock on Tuesday.
Trading Data
On Tuesday, JPOTF stock decreased by 6.40% to $0.0994 with 10.21k shares, compared to its average volume of 40.10k shares. The stock has moved within a range of $0.0994 – 0.1000 after opening trade at $0.10.
Jackpot Digital Announces Non-Brokered Private Placement to Build More Blitz(TM) Electronic Tables
Yesterday, the company announced that it was going to conduct a private placement of a non-brokered nature by way of which it seeks to raise as much as $97500. However, it should be noted that the company is looking to raise the sum by issuing as many as 6500,000 units in Jackpot Digital. The company also announced that it was going to price those units at $0.15 each.
The news about the issuance of units probably came as a source of alarm for investors and the Jackpot Digital stock suffered from a selloff on Tuesday. The stock ended the day with a decline of as much as 5% and it now remains to be seen if it can eventually make a recovery. The units are going to be made up on one common share in Jackpot Digital and one share warrant. The warrant is going to entitle the holder to pick up the company’s share for $0.25 for three years from the date of the closing of the private placement.
Key Quote
Jackpot President & CEO, Jake Kalpakian states, “our sales pipeline is robust, and we anticipate an increased volume of new orders in early 2022. In addition to other table components, a portion of the proceeds from the Financing will go towards computer boards for up to 50 new tables, to increase inventory and avoid possible delays due to recent supply chain disruptions.”
