Thanks for the explanation jimmenknee, and for the pinpoint reference to the CFO's statements at the AGM concerning the subject of private placements. The statements at issue, to the best I can understand them when listening to the recording, are as follows (uncertainties noted in brackets):
"The financing of the company is dependent upon its operations and its results. Hopefully we won't have any more delays; we generate revenues; [unclear, possibly "we do our Niagara Falls and plastic to oil plan"]; and if those revenues are sufficient under our future growth at the level we wish to have it, hopefully we won't have to do any more private offerings. I can't stand here and tell you that we won't, but we'll try not to."
So in your view the above statement was a lie (or more gently, a "fib," or perhaps even more gently, a prevarication) because he did not mention a private placement that was currently underway. Okay, I understand your position now, and that's appreciated. Personally, I try not to infer any meaning beyond what was actually said. The statement speaks for itself, and if there is no mention of present financing methods, or current financing endeavors, then I do not speculate as to what such financing arrangements may entail.
Anyway, I believe the private placement offering was announced publicly shortly after the AGM. Such private placement shares (as unregistered securities) would not be available for public trading for many months thereafter, so investors had ample advance notice of the private placement before the increased supply of stock hit the open market, and could therefore trade accordingly. I doubt anyone will now complain that they missed the opportunity to invest in the private offering because it was not publicly announced until after the AGM, so that should not be an issue.
Lastly, I think it would be foolish for a company to ever rule out possible sources of FUTURE financing, as such considerations must be made in light of current (not future) conditions. That appears, at least to me, to be the message the CFO was trying to convey. It should go without saying that having sufficient working capital is essential to a company's success, particularly with a start-up.
