FOOTHILLS EXPLORATION, INC.: announcements explained, share price

Announcements, explained

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

7 July 2016capital raising announcement● NeutralMajor

On June 30, 2016 the company agreed to sell 3,007,519 new shares to Berwin Trading Limited at $0.665 per share, raising $2 million. This is the first new money raised since the Foothills Petroleum share exchange and adds new shares for existing holders (dilution).

What it means for a shareholder

3.0m new shares at $0.665 to raise about $2.0m. That's 21% dilution: every existing holder's slice gets 21% smaller. If you held $1,000 of shares (1,504 at the issue price), your slice goes from 0.013% to 0.0103% of the company. To keep it you'd need 392 more shares - about $261 at the issue price.

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10 June 2016asset acquisition disposition● NeutralMajor

Key Link Assets Corp., a shell that had planned to buy grocery stores, acquired all of Foothills Petroleum, Inc. on May 27, 2016 in a share exchange, issuing 6,003,759 new shares (4,500,000 to Wilshire Energy Partners and 1,503,759 to Alternus Capital Holdings). Foothills Petroleum's holders now own about 71.8% of roughly 8,363,759 shares outstanding, and the company's business becomes oil and gas acquisition and development. Foothills Petroleum has no revenue and holds Wyoming leases (38,120 acres Springs Prospect, a 35% working interest in the 3,061-acre Ladysmith prospect) and about $1,000,000 of 8% convertible notes owed to Alternus; the filing also says Wilshire got 700,000 warrants and 14.1 million shares bought earlier by Foothills (about 96%) are cancelled.

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