Results 1 to 5 of 5

Thread: XTrain, Las Vegas Railway Express, has another private placement

  1. #1
    The Las Vegas Railway Express, which trades under the symbol XTRN and is known as the X-Train, earlier today issued a public announcement about another private placement of stock. Shares of XTRN closed down one and a half cents to 16 cents a share. Here is the statement:

    LAS VEGAS, NV--(Marketwire - Sep 18, 2012) - Las Vegas Railway Express, Inc. ("X" Train) (OTCQB: XTRN)

    The X Train announced that including sales previously disclosed in filings made by the Company with the Securities and Exchange Commission from May 3 2012 until September 13, 2012, the Company has sold an aggregate of 45,640,000 shares of its common stock for an aggregate purchase price (before deducting expenses of the private placements ) of $2,282,000 to accredited investors. The offering is officially closed to investors. The Company intends to use the net proceeds from the private placements in the amount of 2,186,880 to acquire the company's first railset, station site development costs and engineering, as well as general operating expenses.


    "We are pleased with the interest on the part of investors in the private placement," stated Michael Barron, President and CEO of the Company. "We think we are prepared for the next phase of development of our project now," he remarked. The X Train was represented in the private placement by Sichenzia Ross Friedman Ference LLP.


    It appears that the extra stock was sold at five cents a share?? Is that right??

  2. #2
    I just checked Yahoo Finance and found out that the press release was issued after the close of trading on Tuesday. On the day, the stock was down either 1.5-cents a share, or 2-cents a share, depending on the report. (Yahoo down 2-cents, CNBC down 1.5-cents.)

    Now I have to wonder what the market reaction will be in the morning?

    I think it's rather dramatic that a private placement that amounts to stock at 5-cents a share would be made when the stock is trading for about four times the price on the open market. But could I be wrong?

    Does a company issue new stock at such a severe discount to stock already in the public's hands?

  3. #3
    It appears these placements were already agreed upon 3 years ago. This shouldn't shake the stock price unless it's a knee-jerk, emotional reaction:

    http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8712153-178654-181324&type=sect&dcn=0001096906-12-001796

    EDIT: Bleh, link doesn't work....but just look at the EDGAR filings and see the 10-K report (July 10, 2012) item 13

    It's nothing to fret about from what I can see. It was basically a compensatory measure to retain the corporate bosses and to save operating cash at the same time (from a 2009 perspective).
    Last edited by Count Room; 09-18-2012 at 08:10 PM.

  4. #4
    Count Room, the report you referred to above (I copied and pasted the URL to get it to work) only accounts for 5,564,719 shares. The company's press release cites 45,640,000 shares or a difference of about 40-million. The report you cited does mention another transfer of 20-million shares but those shares have not been transferred yet.

    Well, the market will be open in about 9 hours. We'll see.

  5. #5
    The markets open in about six hours, and I did some further checking. Each week, I report on various casino and Vegas-related stocks on this website, here: http://www.alanbestbuys.com/id103.html And, as part of the report, I list the closing price of the stocks I follow each week. XTRN is on the list of stocks. As a result, I have in my notes, the closing price each Friday during the private placement period of May 3, 2012 through September 14, 2012 which was this past Friday.

    Note that in the company's press release the number of shares sold equals an average selling price of about five cents a share. And here are the closing prices on the various Fridays through that period of time.

    5-4-12 .08
    5-11-12 .07
    5-18-12 .08
    5-25-12 .08
    6-1-12 .08
    6-8-12 .07
    6-15-12 .09
    6-22-12 .07
    6-29-12 .07
    7-6-12 .07
    7-13-12 .07
    7-20-12 .07
    7-27-12 .13
    8-3-12 .16
    8-10-12 .18
    8-17-12 .18
    8-24-12 .17
    8-31-12 .15
    9-7-12 .15
    9-14-12 .17

    I don't know if there were any "restrictions" on that private placement of common stock, but it appears that the insiders who got it had a built in profit with the sale.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •