Reyna Silver (RSLV.V) has closed the brokered placement it announced in July as the company has now issued 11.3 million units priced at C$0.62 per unit to qualified participants. Each unit consisted of one common share of Reyna Silver as well as half a warrant with each full warrant allowing the warrant holder to acquire an additional share of Reyna at C$0.90 for a two year period. Those warrants are now indeed already in the money and should all 5.65M warrants be exercised, Reyna will receive approximately C$5M in additional cash proceeds.
Silver is a hot commodity right now and in an ideal world, Reyna Silver should consider raising more money. We bet no one would complain if the company would add an additional C$10-15M to its treasury at C$1-1.15/share (including a discount to the current share price) as this will give peace of mind for years to come. Additionally, the C$0.20 round will become tradeable in early October and it’s only fair to expect some pressure on the share price as we can reasonably expect some investors to take some profits off the table.
Disclosure: The author has a long position in Reyna Silver.