Obviously, there's a lot of shock and disappointment about the private placement. It appears to be that a loan has been secured with someone by offering issued shares as collateral.

My feeling is that the terms of the agreement, which haven't been made public, are more important than the fact that there is a PP.

If KWG is the entity that gets to chose whether such a loan is repaid in shares or cash, then I think the PP is a good thing. Perhaps funds will become available somehow (miraculously) in the near future to enable KWG to repay the loan with cash, rather than issuing shares and diluting the float.

If the entity loaning the money is able to make the decision about whether or not they get their money back or take shares, then it will unquestionably be a dilutive transaction.

An important question that nobody has asked is this: who has fronted the money?

There have been questions/suggestions as to the dollar amount (and therefore the number of additional shares). My guess would be that if the loan proceeds are for the three reasons alluded to on this board (ongoing expenses, FNC/Bold work, and patent work) then the dollar amount is probably significantly higher than any of the guesses thus far, possibly in the range of $4m or more.

While Lou and certain other posters on Stockhouse have been continually harping on Noront’s imminent financial demise for months, they’ve had blinders on to the fact that KWG was in a position with similar financial pressures. Being emotionally attached to a stock makes it hard to look at a company’s situation with a critical eye.

Plain and simple, it is what it is. KWG needed to do this. We move on.