All American Gold Corp. (AAGC): announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

8 Sept 2011capital raising announcement▲ GoodMajor

On September 5, 2011 the company sold 400,000 new shares at $0.70 each, raising $280,000, to one non-US investor. This is a higher price than the $0.50 placement in July 2011 and adds to the share count.

What it means for a shareholder

400,000 new shares at US$0.700 to raise about US$280,000. That's 0.414% dilution: every existing holder's slice gets 0.414% smaller. If you held US$1,000 of shares (1,429 at the issue price), your slice goes from 0.00149% to 0.00148% of the company. To keep it you'd need 6 more shares - about US$4 at the issue price.

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25 July 2011capital raising announcement● NeutralMajor

The company sold 400,000 new shares on July 11, 2011 at $0.50 each, raising $200,000, to one non-US investor. On July 13, 2011 it also issued 875,000 shares at $0.40 on conversion of a $350,000 convertible note. This adds shares for existing holders' stake to be diluted by, and the conversion is the first sign of the November 2010 convertible notes (inference: $355,500 notes, likely the same ones) being converted.

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