Cannabix Technologies Inc (BLOZF)

[High420]

Taking part in the new placement

I think the company has to fund its projects and that is true for every company and technology. They can't build a product based on charity. I think the new private placement is a good way to load up on the stock and get some free upside with the $.25 warrants.

New rules allow retail investors to get into private placements. Contact your broker and ask them to get you a part of this Placement (if there is any allocated outside of insider family and friends)..
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http://www.stockhouse.com/news/newswire/2016/01/19/retail-investors-to-get-access-to-private-placement-financings-but-not-ontario

Tough break, centre of the universe. Under new rules now in place in British Columbia, Alberta, Manitoba, New Brunswick and Saskatchewan, retail investors can now take part in public company private placement financings – as long as they do so through a broker.

But not in Ontario, and not in Quebec.

That’s the layman’s version of the story, which is apt because it benefits the layman, opening up previously restricted financings to anyone with a valid chequebook, who has sat with a registered investment dealer, been warned of the pros and cons of investing, and been deemed worthy of risk by said dealer.

Even better – there is no limit on the amount of money that can be invested in this fashion, as long as the dealer is meeting his or her obligation under the know-your-client/know-your-product rules.

In order to qualify, the financing must utilize the Investment Dealer Exemption, be listed on a Canadian exchange, have public disclosure documentation that is up to date, and have properly new released the deal. Importantly, the issuer has to provide investors with the contractual right of action in the event the company misrepresents itself in the public disclosure record. A four month hold period applies.

This is not the first change to securities rules in Canada in recent months, with a somewhat restricted Crowdfunding Exemption having been published in November of last year, which allows retail investors to use crowdfunding platforms (like our sister site, InvestX, which has already offered access to private equity deals for Spotify, Instacart and Lyft) to invest up to $2500 in financings.

REACTION:

Around this office? Pretty great.

We recently launched our new Stockhouse Deal Room private placement marketplace, where accredited investors can buy into a variety of financings, all online, once they’ve proven their accredited status. A shift towards allowing retail investors into those deals is welcomed and long overdue, though it will take some time to see how that rule change will apply to our own space.

OUR TAKE:

This is exactly the sort of shot in the arm needed by both brokers, public companies, and investors who want more open access to the kinds of deals traditionally restricted to the wealthy.

In fact, we published an end of year piece just a few weeks ago that demanded the rules be changed in this respect, alleging that nobody was really being protected under the old rules, and everybody was being squeezed.

It’s a shame that Canada doesn’t have a single national regulator that could make this rule change truly national, but work is moving forward in that regard on an ongoing basis. While this rule change is potentially a sea change in Canada’s investment industry, and could open public companies up to significantly larger investment pools when they look to raise capital, financings in the largest capital market in the country and its French speaking neighbour remain closed to the ordinary Joe.

But in the meantime, if you’re in Western Canada and not accredited, but you have a wedge you’d like to get in on a financing, complete with deals at a discount to the market and/or warrants included, you’re about to get your wish.

Read more at http://www.stockhouse.com/news/newswire/2016/01/19/retail-investors-to-get-access-to-private-placement-financings-but-not-ontario#h6AImmFMTpdMKMHS.99