I am glad to see the PP closed with no problems today. In a nutshell, it means that smart money is not overly worried that the market hit an airpocket. It means that we do not have to sweat the short term since we are cashed up all to hell and will be able to go ahead with the biz plan and full-scale exploration regardless of how long the market carries on in doubt. It means the risk level is therefore significantly lower, and we need not fear additional dilution to raise funds at less than ideal terms, anytime in the immediate future.

A stock like KXL will pause to consolidate because the risk capital for those who buy penny stocks was already at play, but the large players that will pay several dollars a share had not yet decided to buy. It was all spec retail money that was carrying the ball since the original high grade announcement. Now that the financing was closed, that significant round of larger institutional money has come to the table and validated the potential.

KXL is still punching above its weight, but at least there is financial clout now to back it up. And it should provide a dose of confidence too, if insiders were willing to pay $3.80 per share, then us retail schmoes should be happy to hang on for the ride with market holdings priced below that.

I guess we can start looking forward to institutional coverage in the months ahead.

cheers!

mike