22 Oct 2015securities registration● Neutral
Hycroft Mining Corp filed notice of an exempt private placement.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
22 Oct 2015listing compliance notice▼ BadMajor
Hycroft Mining Corp terminated the registration of a class of securities, ending its reporting obligation for them.
15 Oct 2015bankruptcy or receivership▼ BadMajor
On October 8, 2015 the bankruptcy court confirmed the company's Amended Chapter 11 plan, resolving the plan approval thread open since the April 2015 filing. When the plan takes effect, all existing shares and the 8.75% senior notes due 2019 are cancelled, along with the bank swaps and the Third Amended Credit Agreement. Holders of existing equity (and subordinated securities claims) are to receive new warrants rather than new common stock; secured bank and swap creditors get cash and a new first lien term loan, and unsecured claim holders get new common stock or cash. The company will also enter a $95.0 million second lien convertible notes exit facility (up from the up to $80 million committed in July). The plan is not yet effective: remaining conditions include the exit facility closing, and the company says it cannot assure when, or if, it will become effective.
21 Sept 2015material agreement▼ Bad
On September 17, 2015 creditors again waived a restructuring support agreement termination right tied to the court lifting the automatic stay on scheduled assets, and majority DIP lenders waived related defaults over unpaid capital lease obligations. Effective September 11, 2015, DIP lenders also waived the failure to finish the Hycroft Demonstration Plant within six months at a cost of no more than $2.5 million. That waiver ends if the plant is not finished by October 12, 2015 or costs exceed $3 million. This continues the pattern of DIP covenant waivers.
31 Aug 2015material agreement● NeutralMajor
On August 26, 2015 the company filed a further modified Chapter 11 plan and amended disclosure statement, and creditors signed a waiver and amendment so the restructuring support agreement covers them without triggering termination rights. The court approved the amended disclosure statement on August 28, 2015, and the July 2015 monthly operating report was furnished. The text shown does not say how the modifications change recoveries.
20 Aug 2015material agreement● Neutral
On August 18, 2015 the noteholders and secured lenders agreed to waive a termination right under the restructuring support agreement that arose because the bankruptcy court lifted the automatic stay on certain assets listed in a schedule. The majority DIP lenders also waived defaults tied to unpaid capital lease obligations and the stay lifting for those same assets. The filing does not name the assets or amounts in the text shown.
7 Aug 2015quarterly activities report▼ Bad
Hycroft Mining Corp reported a quarterly net loss of $257.8 million for the period ended 2015-06-30.
29 July 2015material agreement● NeutralMajor
On July 23, 2015 the company and its creditors signed an amended restructuring support agreement and filed an amended Chapter 11 plan and disclosure statement, replacing the April 24, 2015 versions. Noteholders and secured bank lenders agree to vote for the plan, which can be terminated if confirmation milestones are missed. Separately, funds linked to Aristeia, Highbridge, Mudrick, USAA, Whitebox and Wolverine committed to buy new second lien convertible debt of up to $80 million as exit financing, subject to court approval. The filing does not describe in the text shown what existing shareholders receive under the amended plan.
23 June 2015material agreement● NeutralMajor
On June 18, 2015 the Delaware bankruptcy court approved the sale of the company's non-Hycroft exploration properties (75 properties, about 165,000 acres in Nevada, including claims and royalty interests) to Clover Nevada LLC, a Waterton Precious Metals Fund II Cayman subsidiary, for $17.5 million at closing. Closing is expected by end of June 2015 subject to customary conditions. This is the sale of the exploration portfolio held alongside the Hycroft mine; the filing does not say where the proceeds go.
12 June 2015material agreement▼ BadMajor
On June 8, 2015 the majority DIP lenders gave a second waiver, so missing certain covenants until 6:00 p.m. New York time on June 23, 2015 is not a default. The waived items cover budget delivery, gold sold and gold equivalent sold targets, monthly gold production for May 2015, and a specified milestone. The waiver also limits the company's ability to request further DIP drawdowns during that period. It follows an earlier waiver and amendment dated May 7, 2015, and shows the company was missing DIP operating targets while in Chapter 11.
12 May 2015late filing notice▼ Bad
Hycroft Mining Corp notified the SEC that its quarterly report would be filed late.
12 May 2015quarterly activities report▼ Bad
Hycroft Mining Corp reported a quarterly net loss of $108.5 million for the period ended 2015-03-31.
1 May 2015listing compliance notice● NeutralMajor
Hycroft Mining Corp's exchange filed to remove a class of its securities from listing.
10 Apr 2015substantial holder notice● Neutral
BlackRock, Inc reported no remaining Hycroft Mining Corp shareholding in its periodic institutional filing.
10 Apr 2015substantial holder notice● Neutral
Columbia Wanger Asset Management, LLC reported a Hycroft Mining Corp shareholding of 5.00% of votes in a periodic institutional filing.
18 Mar 2015debt financing▼ BadMajor
The Chapter 11 filing was an event of default under the company's swaps, and all three counterparties terminated them on March 10, 2015. Close-out amounts are $86.3M (Scotiabank), about $12.6M (National Bank of Canada) and $10.37M (Société Générale). After applying letters of credit and cash collateral, NBC claims about $371,000 and Société Générale about $519,000 remain owed. The company also filed procedures letting eligible noteholders subscribe to the DIP facility by 5:00 p.m. Eastern on April 3, 2015. These swaps were the ones tied to the senior notes' cross currency swap and the letter of credit requirement from January 2014.
16 Mar 2015securities registration● Neutral
Hycroft Mining Corp amended its automatic shelf registration statement.
16 Mar 2015securities registration● Neutral
Hycroft Mining Corp amended an already-effective registration statement.
16 Mar 2015listing compliance notice▼ BadMajor
On March 10, 2015 NYSE MKT suspended trading in the common stock and started delisting proceedings, citing the Chapter 11 filing and the plan to extinguish existing stock. The TSX also suspended trading the same day while it reviews continued listing, with a hearing set for March 16, 2015. The company says it will not appeal either decision and expects delisting.
16 Mar 2015late filing notice▼ Bad
Hycroft Mining Corp notified the SEC that its annual report would be filed late.
16 Mar 2015securities registration● Neutral
Hycroft Mining Corp amended an already-effective registration statement.
10 Mar 2015bankruptcy or receivership▼ BadMajor
On March 10, 2015 the company and certain domestic subsidiaries filed for Chapter 11 in Delaware, with a restructuring support agreement backed by holders of over 67% of the C$400M 8.75% notes and its secured bank lenders. The plan would swap bank debt and swaps into a new first lien term loan, give DIP lenders and noteholders new common stock plus a second lien convertible loan, and extinguish existing common stock. Existing shareholders would get warrants only if their class votes for the plan, and nothing if it votes against. A DIP facility of up to $78.0M at 12% (6% cash, 6% in kind) is planned, with Wilmington Savings Fund Society as agent. Trade creditors are expected to be paid in full. This follows the reduced credit facility and the December 2014 equity raise, and ends in a likely loss of the existing equity.
17 Feb 2015substantial holder notice● Neutral
Guggenheim Capital, LLC, Guggenheim Partners, LLC, GI Holdco II, LLC, GI Holdco, LLC, Guggenheim Partners Investment Management Holdings, LLC reported a Hycroft Mining Corp shareholding of 463,115 shares (0.37% of votes) in a periodic institutional filing.
12 Feb 2015substantial holder notice● Neutral
Van Eck Associates Corporation reported a Hycroft Mining Corp shareholding of 7,129,630 shares (5.65% of votes) in a periodic institutional filing.
11 Feb 2015substantial holder notice● Neutral
Columbia Wanger Asset Management, LLC, Columbia Acorn Fund disclosed a new substantial Hycroft Mining Corp shareholding (5.60% of votes).
11 Feb 2015substantial holder notice● Neutral
The Vanguard Group reported a Hycroft Mining Corp shareholding of 4,465,094 shares (3.53% of votes) in a periodic institutional filing.
30 Jan 2015substantial holder notice● Neutral
BlackRock, Inc reported a Hycroft Mining Corp shareholding of 7,607,770 shares (6.00% of votes) in a periodic institutional filing.
21 Jan 2015quarterly activities report▼ Bad
Hycroft Mining Corp reported a quarterly net loss of $461.2 million for the period ended 2014-12-31.
15 Dec 2014material agreement● Neutral
As a condition of closing the December 2014 offering, Robert Buchan, Carl Pescio, Randy Buffington and Stephen M. Jones signed lock-up agreements. They agreed not to sell or transfer company shares or related securities for 60 days from closing without H.C. Wainwright's written consent. Routine closing term with no new financing.
12 Dec 2014capital raising announcement▲ GoodMajor
On December 12, 2014 the company closed the offering announced on December 9, issuing 21,750,000 shares and 10,875,000 warrants for gross proceeds of $21.75M. This completes the thread opened by the December 9 agreement; the shares were sold at $1.00 each, a small fraction of the $10.75 paid in the May 2013 offering.
What it means for a shareholder
21.8m new shares at about $1.00 to raise about $21.8m. That's 17% dilution: every existing holder's slice gets 17% smaller. If you held $1,000 of shares (1,000 at the issue price), your slice goes from 0.000958% to 0.000792% of the company. To keep it you'd need 208 more shares - about $208 at the issue price.
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