I recently blogged about Apollo Consolidated (AOP) and it's option to acquire a gold project in West Africa. There's been plenty of interest with the shares trading good volume. Today we received information via an announcement that the company has finalised a placement through Patersons Securities in which their clients have collectively paid $0.005 so Apollo Consolidated could raise $1,000,000. Whilst we knew that this was coming I do believe it is reason to possibly sit on the sidelines for a bit. 200,000,000 is a lot of shares to come onto the market. Clients of Patersons will be sitting on almost a 240% gain on their investment and that will be too greater temptation to sell.
As an aside, access to these kinds of placements to clients show one key advantage of being with a full service broker. As a person that likes to take full responsibility for my own trades and investment I tend to trade online for the cheaper brokerage costs however throwing a bit of business towards a full service broker will remind him/her to think of you when such deals come along.
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