Each one in plain English, with the numbers worked through for a shareholder.
28 Feb 2023capital raising announcement▼ BadMajor
Inception Mining converted years of accrued insider debt into stock in a single sweep -- issuing hundreds of millions of shares to CEO Trent D'Ambrosio (485.4 million shares for $1.699 million owed), Legends Capital Group (204.3 million for $715,000), the L W Briggs Irrevocable Trust (314.6 million for $1.101 million), and several smaller family/insider holders -- cleaning up the balance sheet at the cost of extreme dilution, right after exiting the Clavo Rico mine.
A third toxic note, $54,000 face value from KBM Worldwide, Inc., convertible at a 49% discount to recent trading prices and carrying steep prepayment penalties (115%-140% of principal depending on timing).
A second toxic convertible note, $115,000 face value from Typenex Co-Investment, LLC, with the same 60%-of-lowest-price discount conversion mechanic and a ratcheting warrant -- the pattern continuing.
Inception Mining took on its first toxic convertible note -- $220,000 face value ($55,000 initial tranche) from Iconic Holdings, LLC, convertible at a steep discount (the lower of $0.45 or 60% of recent lowest trading prices) -- the start of a recurring pattern of death-spiral financing.
Amends the August 8-K to state the whole summer 2013 raise rather than one tranche of it: $138,025 from accredited investors for 306,722 shares plus three-year warrants over another 153,361 shares at $0.90. Months after buying the U.P. and Burlington mine, the company was funding itself in $37,000 increments.
What it means for a shareholder
153,361 new shares at US$0.900 to raise about US$138,025. That's 0.753% dilution: every existing holder's slice gets 0.753% smaller. If you held US$1,000 of shares (1,111 at the issue price), your slice goes from 0.0055% to 0.00545% of the company. To keep it you'd need 8 more shares - about US$7 at the issue price.
Inception Mining raised $101,025 selling 224,500 shares plus warrants to accredited investors -- routine small-scale financing.
What it means for a shareholder
224,500 new shares at about US$0.450 to raise about US$101,025. That's 1.1% dilution: every existing holder's slice gets 1.1% smaller. If you held US$1,000 of shares (2,222 at the issue price), your slice goes from 0.011% to 0.0109% of the company. To keep it you'd need 25 more shares - about US$11 at the issue price.
A fourth ZUG draw -- 800,000 units at $0.25, just $200,000 gross -- at less than a quarter of the $1.10 price from ten months earlier, reflecting a badly deteriorated stock price.
What it means for a shareholder
800,000 new shares at US$0.250 to raise about US$200,000. That's 0.918% dilution: every existing holder's slice gets 0.918% smaller. If you held US$1,000 of shares (4,000 at the issue price), your slice goes from 0.00463% to 0.00459% of the company. To keep it you'd need 37 more shares - about US$9 at the issue price.
A third ZUG draw -- 533,333 units at $0.75, $400,000 gross -- continuing the declining-price trend.
What it means for a shareholder
533,333 new shares at US$0.750 to raise about US$400,000. That's 0.614% dilution: every existing holder's slice gets 0.614% smaller. If you held US$1,000 of shares (1,333 at the issue price), your slice goes from 0.00154% to 0.00153% of the company. To keep it you'd need 8 more shares - about US$6 at the issue price.
A second ZUG equity-line draw -- 375,000 units at $0.80, $300,000 gross -- at a lower unit price than July's draw, an early sign of softening in the stock.
What it means for a shareholder
375,000 new shares at US$0.800 to raise about US$300,000. That's 0.432% dilution: every existing holder's slice gets 0.432% smaller. If you held US$1,000 of shares (1,250 at the issue price), your slice goes from 0.00145% to 0.00144% of the company. To keep it you'd need 5 more shares - about US$4 at the issue price.
Now renamed Gold American Mining Corp. (from Silver America), the company made its first draw on the ZUG equity line -- 277,727 units at $1.10 for $300,000 -- as it broadened its focus beyond silver.
What it means for a shareholder
277,727 new shares at US$1.10 to raise about US$300,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
10 May 2010capital raising announcement● NeutralMajor
Silver America signed a $7.5 million equity line with ZUG Financing Group S.A. (Nevis), letting the company draw up to $1 million at a time by selling units (a share plus half a warrant) priced at 90% of the recent volume-weighted average price, with warrants exercisable at 150% of that price -- a recurring dilutive financing facility the company would draw on repeatedly over the next year.
Silver America also optioned a 72% interest in 12 silver/gold mining claims (Keeno Strike) in Clark County, Nevada from four individual owners -- $272,000 cash, 2,000,000 shares, and $750,000 of exploration spending required by April 2012, with a further 3,000,000 shares issuable if drilling confirmed at least 10 million ounces of indicated silver or 500,000 ounces of gold.
Silver America, Inc. entered an option to earn a 90% interest in two silver mining concessions (Guadalupe) in Zacatecas, Mexico from Yale Resources Ltd -- committing to $900,000 in payments, 1,000,000 shares, and $2,000,000 of exploration spending through 2013, with Yale retaining 10% plus a 2% royalty if the earn-in completed.
