Each one in plain English, with the numbers worked through for a shareholder.
31 May 2007material agreement● NeutralMajor
Cheetah signed a letter agreement for Kepis & Pobe Investments to earn a 90% working interest in its Papua New Guinea licences (about 8,400,000 acres) by paying the first $11,500,000 of exploration and development costs and cooperating to settle about $13,500,000 of Cheetah's debts. A definitive agreement was due within 30 business days of signing.
Cheetah said a second set of past financial statements (June and September 2005 quarters, full-year 2005 and March 2006 quarter) should not be relied on. The causes were stock compensation expensed that should have been capitalised, liquidated damages that had been charged to paid-in capital and are now expensed, and the March 2006 Macquarie convertible financing warrants that are now recorded as a liability instead of equity. This follows the earlier restatement over the Scotia acquisition, and amended filings were promised.
Cheetah said its financial statements for 2004 and the first three quarters of 2005 should no longer be relied on, because it had accounted for its acquisition of Scotia Petroleum Inc. incorrectly. Amended 2004 figures were filed in the 2005 annual report; the filing gives no amounts.
17 Mar 2006capital raising announcement● NeutralMajor
Cheetah closed the first tranche of a financing: a US$5,000,000 senior secured convertible note due March 14, 2007, plus 3,000,000 warrants at $3.42 per share, issued to a subsidiary of Macquarie Bank (Macquarie Holdings (USA) Inc.). Proceeds are earmarked for Papua New Guinea projects, specifically re-entry drilling and completion of the Kuru #2 well, and working capital; a second tranche on identical terms depends on share price, exploration and drilling criteria being met.