BAKKEN RESOURCES INC: announcements explained, share price

Announcements, explained

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

26 July 2016capital raising announcement▼ BadMajor

On July 20, 2016 a group led by Allan Holms (half-brother of Val Holms, now described as the former CEO) tried to take over the company's Helena offices using a stockholder consent signed by 24 holders, including Val Holms (26,235,000 shares). The company obtained temporary restraining orders in Montana and Nevada, with hearings set for Aug 1 and Sept 21, 2016. The takeover triggered Eagle Private Equity's rights under its May 2016 loan, and Eagle put and converted $600,000 of loans into 600,000 Series A Preferred shares carrying votes equal to 60 million common shares. That is a large new voting block, which dilutes the voting power of existing common holders; the outcome of the control dispute is unresolved.

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24 Mar 2011capital raising announcement● Neutral

On March 18, 2011 the company closed a private placement of 2,780,000 shares at $0.25 for gross proceeds of $695,000, with warrants for 1,390,000 shares at $0.50 for three years. A $65,500 finder's fee went to Peter Swan Investment-Consulting, LTD, and the rest will fund operations. Southwest Consulting Services Ltd. put in $250,000, the largest single amount.

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9 Feb 2011capital raising announcement● Neutral

On February 4, 2011 Bakken Resources (name now changed) sold 200,000 shares at $0.25 ($50,000) with 100,000 three-year warrants at $0.50 to three investors, including director David E. Boleneus ($10,000). The money funds company operations. The filing is signed by Val M. Holms as President and CEO.

What it means for a shareholder

200,000 new shares at $0.250 to raise about $50,000. That's 0.374% dilution: every existing holder's slice gets 0.374% smaller. If you held $1,000 of shares (4,000 at the issue price), your slice goes from 0.0075% to 0.00747% of the company. To keep it you'd need 15 more shares - about $4 at the issue price.

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4 Nov 2010capital raising announcement● Neutral

This amendment corrects the name of one investor in the November 1, 2010 placement, now given as Richard Townsend ($10,000) instead of Gary Kearney. All other terms are unchanged.

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3 Nov 2010capital raising announcement● Neutral

On November 1, 2010 the company sold 140,000 shares at $0.25 ($35,000) with 70,000 three-year warrants at $0.50 to two investors, again using the money to pay accounts payable. This is a small raise separate from the larger private placement tied to the Holms deal.

What it means for a shareholder

140,000 new shares at $0.250 to raise about $35,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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22 Apr 2010capital raising announcement● Neutral

The company sold 200,000 shares at $0.05 per share ($10,000) to a single accredited investor, Southwest Consulting Services, LTD, with no fees. The filing says the money was used up paying outstanding accounts payable. The agreement is dated as November 9, 2009 in the text, while the exhibit is dated April 16, 2010.

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