Each one in plain English, with the numbers worked through for a shareholder.
19 Jan 2011capital raising announcement▼ BadMajor
On January 18, 2011 Kodiak closed a private placement of 10,000,000 units at US$0.15 each for gross proceeds of US$1,500,000 with one accredited investor. Each unit has one share and one warrant to buy a share at US$0.50 until January 18, 2013; US$120,000 of issue costs are accrued, including an 8% finder's fee to a European firm. The price is far below the US$2.50 paid in the 2008 placement, and the new shares dilute existing holders. The filing does not say what the money will be used for.
What it means for a shareholder
10.0m new shares at US$0.150 to raise about US$1.5m. That's 7.7% dilution: every existing holder's slice gets 7.7% smaller. If you held US$1,000 of shares (6,667 at the issue price), your slice goes from 0.00557% to 0.00514% of the company. To keep it you'd need 557 more shares - about US$84 at the issue price.
Kodiak closed a private placement on June 18, 2008 of 1,204,000 units at US$2.50 each to three investors outside the US, raising US$3,010,000. Each unit has one share and one warrant at $3.50 until June 18, 2010. Share issue costs are US$260,000, including an 8% finder's fee to a European firm. The press release says proceeds go to the Little Chicago drilling permits, New Mexico seismic, other prospects and working capital. This adds to the share count and potential dilution.
What it means for a shareholder
1.2m new shares at US$2.50 to raise about US$3.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Kodiak sold another 1,450,000 shares to Canadian investors for US$3,650,000 in total (1,400,000 at US$2.50 and 50,000 flow-through at US$3.00), closing November 1, 2007. Research Capital Corporation, the same agent as the September placement, was paid about US$292,000 (8%) and received options/warrants on 116,000 shares in total. The shares are not to be registered for resale in the US. This adds to the share count and continues the run of placements since September.
On September 28, 2007 Kodiak agreed to buy oil and gas assets from Thunder River Energy and CIMA Holdings for up to $27,000,000: a 43% working interest in a Northwest Territories exploration license, rights in about 55,000 acres in New Mexico, a 6.25% interest in 84 km of seismic data and records. Payment is $100,000 deposit already paid, $900,000 cash at closing, 7,000,000 shares at closing and up to 6,000,000 more shares on milestones; it will file a registration statement for the 7,000,000 shares within 45 days of closing. The filing also reports a further 335,000 shares sold October 3, 2007 at $3.00 for $1,005,000 (flow-through, fees about $80,400), and a Canadian resource report by Chapman Petroleum Engineering on two Northwest Territories prospects, with cautions that prospective resources may never become reserves. Section 3.02 says the 7,000,000 shares were issued as partial consideration, so the deal appears to have closed (inference).
What it means for a shareholder
335,000 new shares at $3.00 to raise about $1.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
On September 28, 2007 Kodiak sold 4,622,670 shares for $12,490,000 in total, outside the US: 2,756,000 at $2.50 and 1,866,670 at $3.00 (the latter with a Canadian flow-through tax benefit). Research Capital Corporation was placement agent, paid about $999,200 (8%) plus options on shares. Kodiak must seek a TSXV listing by December 28, 2007 or pay investors a penalty of 2% per month with no time or amount limit, and the filing says there is no assurance the listing will be obtained. This is a much larger raise than the earlier placements.
What it means for a shareholder
4.6m new shares at about $0.2162 to raise about $999,200. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Kodiak closed a private placement on May 10, 2007 of 2,447,900 units at US$1.25 each to eight accredited investors, for gross proceeds of US$3,059,875. It paid or accrued US$280,000 in fees. Each unit had one share and one warrant exercisable at $1.50 for two years, adding to the share count and potential future dilution.
Kodiak closed a private placement on February 22, 2007 of 860,000 units at US$1.25 each to two accredited investors, for gross proceeds of US$1,075,000. It paid US$100,000 in fees. Each unit had one share and one warrant exercisable at $1.50 for two years.
What it means for a shareholder
860,000 new shares at US$1.25 to raise about US$1.1m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Kodiak reported a small private placement closed December 28, 2006: 7,500 units (30,000 shares) at Cdn$6.40 per unit to two accredited investors, for Cdn$48,000. Each unit had three flow-through shares and one common share, and the company will try to register the shares by April 30, 2007.
What it means for a shareholder
7,500 new shares at C$6.40 to raise about C$48,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Kodiak closed a private placement on December 14, 2006 with two accredited investors for CAD$300,000, in units of three flow-through shares and one common share. The filing's price and share-count wording is inconsistent (it cites US$6.40 per unit alongside CAD proceeds), and it refers to a registration deadline of April 30, 2006, which looks like a typo for 2007 (inference).
Kodiak reported a private placement closed June 30, 2006 of 1,130,000 units at US$1.70 each to two investors, raising US$1,921,000. Each unit had one share and one warrant, with an exercise price of $2.50 until June 30, 2008 and $3.50 from July 1, 2008 to June 30, 2011, so it could lead to more shares being issued later.
What it means for a shareholder
1.1m new shares at US$1.70 to raise about US$1.9m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Kodiak closed another private placement on December 30, 2005, selling 1,000,000 common shares at US$0.50 per share to twenty-eight investors for US$500,000. This is a much higher price per share than the US$0.02 placement a week earlier; the filing does not explain the difference.
Kodiak closed a private placement on December 22, 2005 of 15,000,000 common shares at US$0.02 per share to twelve investors, raising US$300,000. The new shares dilute existing holders.
