For those not familiar with fundraising, a Private Placement is a sale of stock or debt to pre-selected investors/institutions in order to raise funds for specific objectives. This is done instead of doing a public offering so that (most of the time) the market isn’t instantly oversaturated with a ton of new shares, thus diluting the share price and causing a potential selloff.
Taronis Fuels, Inc. (OTCQB:TRNF), a global producer of renewable and socially responsible fuel products, announced the closing of a $10.85-million private placement of its shares of common stock. The company plans to uses these proceeds to repay the majority of an existing $7.5-million convertible note and to provide additional working capital for the company.
Traders seemed to change their intraday sentiment on the news, as shares that were in negative this morning turned positive following the release, pushing the shares as high as $0.13/share (+15.5%). This move came on higher than usual volume, moving the stock away from its lower half of its current trading range.
