GMP initiated coverage of ZEN this week and some posters have suggested that this means they are arranging a private placement for ZEN or at least participating in one. This of course is not a great thing in the short run for current investors since the SP is so low at the moment. But I don't think anyone knows that there will be a PP as fact. GMP did co arrange the IPO for ZEN back in 2010. Currently the ZEN lists 19% of its shares held by institutional investors, since we know that Cliffs had about 11% that leaves some 8% (about 4.4 million shares) unaccounted for. GMP could very well hold some or all of these shares and its new coverage of ZEN could be simply related to that fact and the fact that they see a lot of upside at the momement due to the large number of interested parties signing NDAs with ZEN and the soon to be released PEA.

So its good not to get ahead of ourselves, The company has enough money to get to the end of 2015 and has 1,000,000 Warrents priced at $1.50 and 1,475,000 options priced at $0.60 expiring in late December next year which would bring in a combiened $2,385,000. Since all of these warrants and options are in the money even today, they are going to be exercised. I really don't think the company feels a strong need to raise money at this point and dilute their 25% stake in the company with cheap shares, but what do I know.

In my opinion GMP is just trying to line it self up with managment for a PP which might or might not happen but would only happen after a lot of good news and a significant increase in price. This might be needed early to mid next year if there was a hostle stink bid or of the potential for an early buyer was weak due to market condiditons and not anything to do with ZEN.

Far as I am concerned nothing has changed, we are in for a lot of good news and managment is not selling out this baby for chump change.