EFLO ENERGY, INC.: announcements explained, share price

Announcements, explained

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

31 Oct 2013capital raising announcement● NeutralMajor

On October 30, 2013 the company sold $2,255,000 of convertible notes to 22 accredited investors. The notes mature in 18 months, convert at $1.00 per share and pay 10% interest (in cash or shares at $1.25 per share). Interest rises to 12.5% or 15% if the company has not moved to a senior stock exchange within 9 or 12 months. Investors also received warrants for 1,127,500 shares at $1.25 for three years, and the company paid $176,400 in finder's fees. This is the company's first disclosed debt-like financing, after earlier share-only private placements, and 3,382,500 shares are reserved for conversion and warrants, which could dilute existing holders.

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8 Aug 2012capital raising announcement● Neutral

Between July 10 and August 7, 2012 the company sold 1,275,001 shares at $1.20 each to nine accredited investors, raising $1,530,000 gross and paying $53,550 in finder's fees. This continues the 2012 private fundraising and adds to the share count.

What it means for a shareholder

1.3m new shares at $1.20 to raise about $1.5m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held $1,000 of shares (833 at the issue price), your slice goes from 0.00974% to 0.00847% of the company. To keep it you'd need 124 more shares - about $149 at the issue price.

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5 July 2012capital raising announcement● NeutralMajor

On June 29, 2012 the company signed a conditional deal with Devon Canada to buy its 22.989% working interest in the Kotaneelee area of the Yukon (including a 69.337% interest in one producing gas well, about 3.5 MMCFD) for CAD$270,000 in cash plus taking on Devon's share of cleanup liabilities, which early estimates put at USD$7-8 million. This follows through on the Kotaneelee offer first disclosed in April 2011. The deal needs a CAD$10 million guarantee, expected from largest shareholder Holloman Corporation for 3,250,000 shares, and CAD$5 million of letters of credit, expected from Pacific LNG Operations for 4,000,000 shares; PLNG's president Henry Aldorf is the company's Chairman. Closing was scheduled for July 18, 2012 and depended on financing and other conditions. The filing also reports a further 575,000 shares sold at $1.20 for $690,000.

What it means for a shareholder

575,000 new shares at $1.20 to raise about $690,000. That's 7.3% dilution: every existing holder's slice gets 7.3% smaller. If you held $1,000 of shares (833 at the issue price), your slice goes from 0.0115% to 0.0106% of the company. To keep it you'd need 66 more shares - about $79 at the issue price.

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29 June 2012capital raising announcement● Neutral

Between June 25 and 28, 2012 the company sold 675,000 shares at $1.20 each to six accredited investors, raising $810,000 gross and paying $28,350 in finder's fees. This adds new shares to the count, and is the start of a mid-2012 funding round.

What it means for a shareholder

675,000 new shares at $1.20 to raise about $810,000. That's 8.5% dilution: every existing holder's slice gets 8.5% smaller. If you held $1,000 of shares (833 at the issue price), your slice goes from 0.0115% to 0.0105% of the company. To keep it you'd need 77 more shares - about $92 at the issue price.

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