How One Private Placement Turned $20,000 Into $2.2 Million - and Why We're Doing It Again

I’ve spent the last several days speaking at the New Orleans Investment Conference.

My main stage talk was about private placements, and why you should be doing them.

The presentation started with a single number: 11,025%.

That’s our biggest return ever from a private placement. It turned every $20,000 into $2.2 million. We and our members did that.

Then a second number: $4.45 MILLION.

That’s how much you would have made by exercising the warrants that came with that private placement.

The company was Patriot Battery Metals, now called PMET Resources.

Lives Changed with Patriot Battery Metals chart

From there, I covered the main benefits of purchasing stock directly from issuers via private placement. Those include: 

  • Timing: Invest alongside company insiders, strategic investors, and institutions. (The “smart” money.)
  • Pricing: Private placements can be done at a discount to current market price (25% up to $0.50, 20% if $0.51-$2.00, and 15% above $2.00)
  • Leverage: Often come with warrants that allow (but don’t require) you to buy more in the future at a fixed price.

So you can get a discount to whatever the stock is trading at plus warrants that allow you to buy more in the future at an also-discount price.

Across from the main stage, in the exhibit hall, are a few companies we’ve helped finance this way.

One is Kingsmen Resources (TSX-V: KNG).

Kingsmen Resources chart

We bought 25-cent shares in Kingsmen in 2024 that came with 40-cent warrants. A year later, shares are up ~600%. Plus we have warrants that are ~330% in-the-money and don’t expire for another year. 

Another company here that we financed privately is Duara Gold (TSX-V: DGC).

Daura Gold chart

We bought shares at 6-cents in a private placement earlier this year that are now ~650% higher after just 10 months. We also have warrants to buy more at 10-cents anytime we want through 2027 that would put a few more hundred percent in our families’ accounts.

Kincora Copper (TSX-V: KCC) flew into the Big Easy all the way from Australia, where they’re pursuing the prospect generator model. We financed that company at 30-cents earlier this year alongside Rick Rule and Jeff Phillips.

Kincora Copper chart

Those shares are up ~333% from financing price in four months. And because of the warrants that came with the private placement, we can buy more at 50-cents any time we want until 2028.

After the talk, several people tracked me down in the hallway to ask how they can participate in these deals alongside us and other “smart money” in the space.

That’s easy. We’ve been offering discount pricing to Private Placement Intel all year for $2,025. But that will be ending soon.

Our next deal — a tiny gold IPO that we’ll be the first ones to fund — is nearly ready. It’ll be a 25-cent deal with warrants. And we’ll do it before anyone else has a chance to bid it up.

Given the performance and the member limit, we’ll be raising prices before year-end.

This will likely be the last deal for which we offer the $2,025 pricing.

So make sure you check out Private Placement Intel now if you have any interest at all in investing alongside us.

Call it like you see it,

Nick Hodge

Nick Hodge
Publisher, Daily Profit Cycle