DALECO RESOURCES CORP: announcements explained, share price

Announcements, explained

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

27 Mar 2013capital raising announcement● NeutralMajor

On March 25, 2013 Daleco agreed to sell 15,000,000 shares for $1,500,000 plus a five-year warrant for up to 18,000,000 shares at $0.20 to Far East Investments LLC and DTE Investment Ltd. Far East also becomes exclusive sales and marketing agent for Daleco's natural resource products in Asia (excluding India and excluding ZeoSure products). As a condition, major creditors agreed to hold off demanding payment for two years, with accelerated payment if Daleco gets revenues or investments above stated amounts or an event of default goes uncured; $350,000 of proceeds pays past-due amounts to certain debt holders. While the investors hold 51% or more of the shares bought, they can ask Daleco to nominate two directors. The deal significantly dilutes existing shareholders.

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3 Mar 2011capital raising announcement● Neutral

On February 25, 2011 Daleco hired The Musser Group, a four-principal advisory firm, under an agreement running to February 24, 2013. It is paid only in stock, totalling 2,400,000 shares, plus pre-approved out-of-pocket costs. Daleco also issued warrants for 2,500,000 shares at $0.15, exercisable to February 24, 2016 but only once the stock's average bid/ask price has been above $1.00 for 30 consecutive trading days. The scope covers managed services, strategic planning and help carrying out board-approved strategies; the press release says the aim is to commercialise its mineral holdings. The new shares and warrants would dilute existing holders.

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23 Sept 2005capital raising announcement● NeutralMajor

Daleco closed a private placement on September 21, 2005 of 6,500,000 common shares at $.25, raising $1,625,000 gross, with warrants attached; it was sold by officers and directors with no commissions. The money is to retire its Class A Preferred Stock (tied to the Kane litigation) and for general working capital, and the new shares dilute existing holders.

What it means for a shareholder

6.5m new shares at $0.250 to raise about $1.6m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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