WELLGREEN PLATINUM COM NPV (OTCMKTS:WGPLF) has staged a huge reversal since hitting its 52-week low and as of today’s close has locked in gains of over 66% in just a few short weeks. We have the inside scoop on the story behind Wellgreen rise. It is not hard to see why investors are excited and bidding up the share price.
WGPLF released a statement saying that it would release up to 60.5 MILLION units in a private placement with Electrum Strategic Opportunity Fund at a share price of $0.20. The private placement is expected to raise cash proceeds of $10,000,000. Given that the market cap is $35 million, this is a significant vote in confidence by a prominent investment fund. Each unit of the private placement will consist of one common stock unit and one common share purchase warrant. The proceeds of the private placement will be used for developing its PGM-nickel project in the Yukon and for general corporate purposes.
WGPLF recently also announced that it had finished its drilling program at the PGM project. The company is committed to seeing the project through to completion. Wellgreen Platinum is a mining exploration and development company focused on the active advancement of its 100% owned Wellgreen platinum group metals (PGM) and nickel project.
The company has no revenues and unless this project comes to completion, there will likely be any revenues in the near future. Investors are betting that management can deliver on its strategy. WGPLF’s main assets is in its land and equipment. It has $3M in cash as of the 3 months ending September. There will be a boost to their cash given the private placement. There will likely be additional tranches in private placement over the coming days or weeks.
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WGPLF is currently trading at a $24.58 million market valuation. Management is dedicated to seeing the completion of the PGM Nickel project which is a good sign for investors and shareholders. They have been consistent on their strategy. The private placement is a vote of confidence given the size of the offering. This exciting story is just the beginning. Stay tuned for more analysis and research.
We will be updating on WGPLF when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with WGPLF.
Disclosure: we hold no position in WGPLF either long or short and we have not been compensated for this article.