Each one in plain English, with the numbers worked through for a shareholder.
1 May 2006capital raising announcement● NeutralMajor
On April 28, 2006 Cornell Capital advanced the last $1,000,000 of the 7% secured convertible debentures from the January 2006 deal, completing the $5,000,000. This tranche was originally due only after the registration statement took effect, so it was advanced early under an amended agreement. In exchange Ignis issued Cornell additional five-year warrants for 2,913,580 shares at $0.81 and 3,311,828 shares at $0.93, and must file a registration statement within five days of April 28 and use best efforts to have it effective within 130 days of filing. The extra warrants add to the dilution potential already created by the debentures (inference).
10 Jan 2006capital raising announcement● NeutralMajor
On January 5, 2006 the company agreed to sell Cornell Capital Partners $5,000,000 of 7% secured convertible debentures, of which $2,500,000 was paid immediately, $1,500,000 is due before a registration statement is filed and $1,000,000 after it is declared effective. The debentures mature in three years, are convertible into shares at the lesser of $0.93 or 94% of a recent low average price, and come with warrants for 3,086,420 shares at $0.81 and 2,688,172 shares at $0.93. Cornell gets a first-priority security interest in the company's assets, and officers Buschmann and Piazza pledged 3,820,000 and 500,000 of their shares. Conversion at lower prices could dilute shareholders (inference); the press release says the money funds the Barnett Crossroads and Crimson Bayou prospects.
Petrofinanz agreed on October 28, 2005 to buy 80,000 more units at $1.25 each, each with a 2-year warrant at $2.00. On December 22, 2005 Petrofinanz also lent the company $100,000 at 12% a year, with principal and interest due by June 20, 2006.
The company restated the Petrofinanz deal: the July 3,000,000-unit purchase now carries a 2-year warrant at $2.00 per share (the July report said $1.50), a change from what was earlier disclosed. It also sold Petrofinanz a further 133,333 units at $1.50 each on October 18, 2005, each with a 2-year warrant at $2.00.
What it means for a shareholder
133,333 new shares at $1.50 to raise about $200,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
29 July 2005capital raising announcement▲ GoodMajor
Now named Ignis Petroleum Group, the company sold 3,000,000 units at $0.50 each ($1,500,000) to Petrofinanz GmbH, with $1,200,000 received and $300,000 due by September 30, 2005. Each unit was one share plus a warrant at $1.50 per share; the company said the money funds an upcoming well expected to start drilling in August. New shares increase the share count for existing holders.
What it means for a shareholder
3.0m new shares at $0.500 to raise about $1.5m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
This amends the May 2005 report and adds detail: the six purchasers paid $0.10 per share, $194,000 in total, for the 1,940,000 shares bought from D.B. Management. Ignis Petroleum Corporation became a wholly owned subsidiary through the 1,600,000-share exchange. The agreements were attached as exhibits; no new transaction is reported.
19 May 2005capital raising announcement● NeutralMajor
Sheer Ventures Inc. (the shell company that became Ignis Petroleum Group) agreed on May 16, 2005 to issue 1,600,000 restricted shares for all 1,600,000 shares of Ignis Petroleum Corporation, an oil and gas exploration company, so Ignis became its business. Separately, Doug Berry's company D.B. Management sold 1,940,000 shares to six purchasers, leaving Philipp Buschmann with 764,000 shares (11.24%).
