Each one in plain English, with the numbers worked through for a shareholder.
14 Oct 2022capital raising announcement▼ Bad
On October 10, 2022 GulfSlope signed an agreement to sell up to $650,000 of 8% convertible notes, of which only $55,000 was bought at signing; further tranches need later agreement. The note matures April 8, 2023 and, from six months after issue, converts at 65% of the lowest 10-day trading average price. This is small new funding on terms that could produce many new shares if the share price is low (inference). The filing does not say what the money is for.
On September 30, 2020 GulfSlope paid Delek GOM Investments $1,220,548 in cash to settle the debenture issued in October 2019, plus 17,500,000 shares in place of $129,211 of unpaid interest. This clears the Delek debenture ahead of its October 17, 2020 maturity and resolves the October 2019 debt thread. It costs some dilution through the new shares.
On October 22, 2019 GulfSlope and Delek GOM Investments signed a post-drilling agreement: GulfSlope issues 38,423,221 shares to Delek as compensation tied to insurance proceeds from drilling the Tau well, and replaces its $1,220,548 owed under the March 2019 term loan with a 12% convertible debenture due October 22, 2020, convertible at $0.05 into up to 24,410,960 shares. The term loan is terminated and Delek's liens are released except those attributable to the Tau well. This closes out the March 2019 Delek loan and adds more shares and a new debt owed to Delek.
27 June 2019capital raising announcement▼ BadMajor
On June 21, 2019 GulfSlope agreed to sell up to $3.0 million of 8% convertible debentures, with $2.1 million bought at signing and $400,000 and $500,000 more tied to filing and SEC effectiveness of a resale registration statement. The debenture matures June 21, 2020 and converts at the lower of $0.05 or 80% of the lowest 10-day trading average price, and the buyer also got warrants for 50.0 million shares at $0.04. The buyer is not named in this filing. The variable conversion price means the number of new shares depends on the future share price (inference: it could dilute existing holders). This is new funding after the March 2019 Delek loan was converted to shares.
7 Mar 2019capital raising announcement● NeutralMajor
On March 1, 2019 GulfSlope entered a Delek GOM term loan facility of up to $11.0 million at 5% interest, due six months after closing and secured by substantially all its assets, and had borrowed $10.0 million by March 6. Delek was issued warrants for 238,095,238 shares at $0.042, and by March 6 it exercised them in full by cancelling the company's outstanding debt to it, so the $10.0 million was converted into shares rather than repaid in cash. CEO Seitz agreed to subordinate his loans to Delek's. This deepens the Delek relationship from the 2018 farm-out and adds a large number of new shares for existing holders.
12 Jan 2018capital raising announcement▲ GoodMajor
On January 8, 2018 GulfSlope signed a participation agreement with Delek GOM Investments and Texas South to farm out its Gulf of Mexico prospects: the parties commit to drill the Canoe and Tau prospects, and Delek can take part in further drilling phases, earning a 75% working interest by paying 90% of well costs while GulfSlope keeps 20% and pays 8%. Delek also pays about $1.1 million per exploration plan filed (the press release says $1.5 million, split 73% GulfSlope and 27% Texas South) and can buy up to 20% of GulfSlope's stock; GulfSlope issued 80 million shares to Hi-View for consulting, to be returned if Delek does not fund the roughly $1.1 million payment within six months. This follows the 2015 Texas South farm-out and brings in a large new partner for drilling, expected from mid-2018.
25 July 2014capital raising announcement▲ GoodMajor
On July 22, 2014 GulfSlope sold 33,448,335 new shares at $0.24 each to 43 accredited investors for gross proceeds of $8,027,600, paying placement agents $388,000. The new shares add to the share count, and the company must file to register them for resale within 30 days; late filing costs it up to 5% of the purchase price in penalties.
What it means for a shareholder
33.4m new shares at US$0.240 to raise about US$8.0m. That's 5.1% dilution: every existing holder's slice gets 5.1% smaller. If you held US$1,000 of shares (4,167 at the issue price), your slice goes from 0.000666% to 0.000632% of the company. To keep it you'd need 223 more shares - about US$54 at the issue price.
Now named GulfSlope Energy and incorporated in Delaware, the company held an initial closing of a new private placement on June 1, 2012, issuing 16,500,000 shares at $0.01 for gross proceeds of $165,000, for general corporate purposes. More shares in issue dilutes existing holders; the filing calls this an initial closing, so more may follow.
What it means for a shareholder
16.5m new shares at US$0.010 to raise about US$165,000. That's 41% dilution: every existing holder's slice gets 41% smaller. If you held US$1,000 of shares (100,000 at the issue price), your slice goes from 0.423% to 0.249% of the company. To keep it you'd need 69,767 more shares - about US$698 at the issue price.
Plan A Promotions held the final closing of a private placement on October 21, 2011, issuing 13,650,000 new shares at $0.01 for gross proceeds of $136,500, to be used for general corporate purposes. This adds to the share count, so existing holders own a smaller share of the company.
