None of you have mentioned the significance of this private placement. I believe that the significance is 2 fold.

Firstly, as deals are signed, or are pending, Sonomax will need to show a significant amount of cash on hand. With respect to an OEM, the reason is to reasonably satisfy the OEM that Sonomax will remain a going concern for the duration of the contract. With respect to retail deals Sonomax needs to demonstrate that they have the cash to deliver a manufactured product.

So, I believe that the financing is a sign of more deals to come in within the next few months.

Secondly, on the venture exchange, companies are only allowed to raise cash at 5 cents or higher. Many and most companies are forced to do roll backs to finance their operations. Sonomax is committed to NOT rolling back the stock until there is an opportune time to do so. Sonomax, while trading at 4 cents has still convinced one or more institutions to take down a private financing at a 20% premium to the market price. The institutions could have simply gone to the open market and paid 4 cents. Institutions are not there to lose money and they do far more due diligence then your or I on such deal which may include such things as interviewing clients of Sonomax. The bottom line is that the institutions feel that Sonomax was worth a 20% premium to the current share price for the purpose of gaining the options that are tied to the shares. This was a MASSIVE vote of confidence in Sonomax.

This financing could be a sign of positive news items to come IMHO.

Good Luck!

Primed24