Hi pipe,

Falcon's books just went through a review by MacQuarrie, as part of the due diligence performed as the underwriter for the private placement. This is routinely done to ensure the private placement money being sought will be used for the purpose stated, as opposed to being used to pay off past debts, for instance. In this way, MacQuarrie could assure the likes of Eric Sprott and others who participated in the placement that the funds were to be put to good use. I think we can reasonably assume Sprott, MacQuarrie, et al, saw something that seemed to them to be a reasonable investment, although not without risk, and that they had reasonable assurance the money would be spent appropriately.

cheers,
Beam