Is it fair to think of them as a "promoter"? Usually I associate companies using a promoter as being scammy pump and dumps.
What is your take on Sophic and it's track record? Is it a legit expense for Kraken to spend on their services, or are they paying them to promote the stock and generate liquidity rather than using those funds to grow the business?
Do you like the stock now that it's trading around the $0.95 bought deal price, or is this creating an overhang and being propped up by a promoter?
There are good promoters and bad promoters. We do not mind if a company outsources investor relations, as it can be a very time-consuming task for senior executives. PNG has had a relationship with Sophic for at least eight years, and certainly seems comfortable with the relationship. The price paid (not including some share options) seems quite reasonable compared to what we have seen. Sophic has an OK reputation. Reviews are tough as clients/investors only really notice when a stock does really well or really poorly. Otherwise it is a fairly non-note-worthy business. We would be comfortable with this relationship overall as it stands now. The issue has closed, and considering current price and volume last week we doubt the dealers have any inventory left to clear out now.