Each one in plain English, with the numbers worked through for a shareholder.
1 May 2006capital raising announcement● NeutralMajor
On April 28, 2006 Blue Dolphin sold 400,000 new shares to an institutional investor at $4.90 each (80% of the 20-day average price), raising $1.96 million (about $1.8 million after costs), plus 24,000 placement-agent warrants. This is a second private placement within two months, at a price well above the $1.75 paid in March 2006; the proceeds are for acquisitions, facility expansions and working capital. It adds to the share count, and the shares and warrants must be registered by May 15, 2006.
What it means for a shareholder
400,000 new shares at US$4.90 to raise about US$2.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
13 Mar 2006capital raising announcement● NeutralMajor
On March 8, 2006 Blue Dolphin sold 1,171,432 new shares to investors at $1.75 each, raising $2.05 million ($2.025 million after costs), plus 8,572 warrants to its placement agent Starlight Investments. The money is for possible acquisitions, facility expansions and working capital. This is new share issuance that dilutes existing holders, and the company must register the shares for resale by May 15, 2006.
What it means for a shareholder
1.2m new shares at US$1.75 to raise about US$2.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Blue Dolphin issued a further 815,291 shares in April 2005 (592,589 on April 15 plus 222,702 elsewhere in the month) as holders net-exercised the Sept and Nov 2004 warrants, giving up the right to 101,378 shares. Together with the earlier April issuance, more of the 2004 warrants have been converted into stock, increasing the share count; no cash proceeds are stated.
On April 1, 2005 Blue Dolphin issued 743,969 new shares after holders exercised the warrants issued in Sept and Nov 2004, using net exercises (holders gave up the right to 47,697 shares instead of paying cash). It also issued 128,541 shares from stock option exercises effective March 21, 2005 (exercise prices $0.43 to $1.55). This is the dilution from the late-2004 warrant financing starting to occur; no cash proceeds are stated for these exercises.
6 Dec 2004capital raising announcement● NeutralMajor
Blue Dolphin closed the second part of its private warrant sale on Nov 30, 2004: 1.55 million warrants at $0.003 each, exercisable at $0.25 per share for five years, after stockholders approved it on Nov 11. This completes the Sept 2004 financing (a $750,000 note plus 2.8 million warrants in total) and means existing shareholders face possible dilution as warrants are exercised. Directors Benz, Parker and Chadwick bought 41,667, 341,665 and 20,834 of the warrants, the company paid Chadwick's firm Sanders Morris Harris a $25,000 fee and will retain it as financial adviser, and it signed a consulting agreement with Parker. The note's maturity was extended to Sept 7, 2005. Proceeds are for working capital and general corporate purposes.
