Each one in plain English, with the numbers worked through for a shareholder.
30 Dec 2016capital raising announcement▼ BadMajor
On December 28, 2016 Jayhawk finalised the terms of a November 2016 settlement with Kelly Stopher, a former officer and director. It issued him a $177,173.49 four-year, 0% convertible note (convertible at $0.01 per share, secured by a pledge of 350,000 shares) and a 5-year warrant for 75,000 shares at $0.01. A second amendment protects his net equity, warrants and collateral if the company changes the conversion ratio of its proposed 100:1 reverse split. The note can be repaid in full at his option once the company raises at least $3,000,000, and he can foreclose on the pledged shares if substantially all assets are sold. Stopher is now described as a former officer and director, while Scott Mahoney is the signing Interim President/CEO and CFO.
On November 3, 2015 Jayhawk granted Vast Exploration a further 39,645,872 warrants, exercisable at $0.005 per share until November 3, 2020, in return for Vast eliminating about $198,229.36 of company liabilities. This is a second grant under the September 25, 2015 Warrant Purchase Agreement, following the 94,333,678 warrants of October 8, and adds to potential dilution from Vast.
On October 8, 2015 Jayhawk granted controlling shareholder Vast Exploration 94,333,678 warrants, exercisable at $0.005 per share until October 7, 2020, in return for Vast taking on about $471,668.39 of company liabilities. The grant was made under a September 25, 2015 Warrant Purchase Agreement. At $0.005 the exercise price is below the $0.01 conversion price on the debentures, and exercise would add shares to the 199,125,629 outstanding (inference: further dilution for other shareholders and more control for Vast).
On April 13, 2011 Jayhawk closed a $321,000 private placement of 2,675,000 shares at $0.12, with no warrants; CEO Lindsay Gorrill bought $144,000 (44.9%). Because of that lower price, the October 2010 debentures and warrants were re-priced from $0.18 to $0.12 per share under their own terms, which increases the shares they could convert into.
What it means for a shareholder
2.7m new shares at $0.120 to raise about $321,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
The $800,000 convertible note from July 2008 (due July 30, 2009) was extended to July 30, 2010. Accrued interest to July 30, 2009 was paid in 384,000 restricted shares, and a $40,000 extension fee was paid in 160,000 restricted shares, so the extension adds shares. An attached press release updates the southeast Kansas projects (Uniontown and Girard, about 45,000 gross acres): only 5 wells are producing, at over 105 mcf/day, and True Energy has piloted 5 wells with its own stimulation methods. The release describes the True Energy deal as up to 85% for $1.8 million over 3 years, which differs from the $500,000 + $1,300,000 minimum in the August letter agreement (the two figures sum to $1.8 million, so likely consistent but not stated). The press release names the note holder as Starshell Consultants.
6 Aug 2008capital raising announcement● NeutralMajor
On July 30, 2008 Jayhawk issued an $800,000 convertible note due in one year at 12% interest, convertible at $1.75 per share, with 400,000 warrants at $2.10 expiring in two years. This is new debt that could add shares if converted. The company's address is now Post Falls, Idaho.
On April 15, 2008 two shareholders exercised warrants at $1.00 per share, and Jayhawk issued 599,939 shares, with proceeds intended for working capital. This adds shares and cash, continuing the warrant exercises seen on March 31.
On February 18, 2008 Jayhawk agreed to buy oil, gas and mineral interests in Crawford and Bourbon Counties, Kansas from Galaxy Energy for $2,000,000, with closing set for March 31, 2008. It also issued 50,000 shares to Titan West Energy for services.
