Each one in plain English, with the numbers worked through for a shareholder.
26 Nov 2007capital raising announcement● NeutralMajor
On November 20, 2007 the company closed two private placements: 1,083,334 shares at $0.60 ($650,000) with one-year $1.50 warrants, and 4,500,000 warrants at $0.60 ($2,700,000), each exercisable into a share plus a $1.50 one-year warrant. The second placement fully vests only when authorised common stock is raised to 200,000,000 shares. Also issued: 500,000 warrants to Armada Capital for consulting and 1,000,000 warrants to Rodolfo Michels. Adds fresh cash after the fraud disclosure, with further dilution.
What it means for a shareholder
1.1m new shares at $0.600 to raise about $650,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
4 Oct 2007capital raising announcement● NeutralMajor
On October 2, 2007 the company sold 10,000,000 unregistered shares at $0.25 each, raising $2,500,000 from accredited investors. New cash for the company, but more shares outstanding for existing holders.
More unregistered issuances: 2,000,000 warrants at $0.49 to CRT Capital Group for advisory services; warrants at $0.50 to new Chairman David Francisco (1,000,000), Rodolfo Michels (1,000,000) and Berenice Arroyo (300,000); and 4,300,000 warrants at $0.50 owed to investors from the April 2007 placement, expiring April 29, 2008. No cash is stated as received in this filing.
A catch-up list of unregistered share and warrant issuances in 2007. The main items: $1,075,000 raised from 4,300,000 shares at $0.25 (April 30); $125,000 received when CEO Tim Acton exercised 500,000 warrants at $0.25; $416,850 of 24% convertible debentures converted into 833,700 shares; and many warrants issued to executives, a director and consultants. A December 2006 loan of up to $1,150,000 intended to start production was repaid, with interest of $162,280 paid in 649,118 shares, because the company decided not to go ahead with production in the near term. These issuances dilute existing holders.
