When it comes to small companies, a lot of the time it’s more difficult to secure funding when compared to the Apples or Amazons of the world. For companies that are less established or that haven’t scaled to expand just yet, there are other ways of going about raising capital outside of lines of credit.
The most common form of raise companies are utilizing these days is called a Private Placement, which allows both accredited and non-accredited investors to invest in a company in return for either debt or equity, assuming they raise under one of the exemptions that allow both types to invest.
This is exactly what South Star Mining Corp (TSXV:STS) is utilizing. The company announced that it intends to increase the size of the non-brokered private placement by $200,000 to a total raise amount of $1,500,000 due to an increase in demand.
Traders seemed to like the aggressive need for shares as shares trading on the TSX Ventures exchanged popped up to $0.135/share (+12.5%) following the news. This move is a strong continuation of the success the stock has had over the last few months.