JOHN D. OIL & GAS CO: announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

19 Feb 2008capital raising announcement▼ BadMajor

Effective February 12, 2008 the company sold 650 Series A Convertible Preferred Shares at $1,000 each ($650,000 total) to two accredited investors. The shares pay 8% annual dividends (10% if payments are missed), carry a $1,000 liquidation preference, and convert to common at $1.00 per share. A missed dividend lets preferred holders elect one director. This adds a class of stock ranking ahead of common shareholders and potential dilution. The filing does not state a use for the money.

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30 June 2006capital raising announcement● Neutral

On June 30, 2006 the company issued 1,102,355 shares at $0.62 each to the Richard M. Osborne Trust, of which CEO and Chairman Osborne is trustee, to pay off the $683,460.50 balance on a revolving demand note dated January 1, 2006. The debt is cleared but existing shareholders are diluted, and the counterparty is the company's own chairman.

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28 Apr 2006capital raising announcement● Neutral

A second private placement: 600,000 shares at $0.50 each ($300,000 total) sold to three accredited investors on April 15, 24 and 26, 2006, continuing the April raise. This adds further dilution. The filing gives no use for the money.

What it means for a shareholder

600,000 new shares at $0.500 to raise about $300,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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20 Apr 2006capital raising announcement● Neutral

Now named John D. Oil and Gas Company, it sold 1.1 million shares at $0.50 each ($550,000 total) in a private placement to four accredited investors on April 6, 14, 17 and 18, 2006. Existing shareholders are diluted by the new shares. The filing does not say what the money is for.

What it means for a shareholder

1.1m new shares at $0.500 to raise about $550,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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