Past year: ▼ 94%(1.00c – 16.0c USD)
Each one in plain English, with the numbers worked through for a shareholder.
3 Sept 2013capital raising announcement▼ Bad
This amended filing repeats the August 2013 Ironridge settlement terms (2,588,888 initial shares, possible additional issuances, ownership caps) and adds the stipulation and court order as Exhibit 10.1. It carries no new terms.
16 Aug 2013capital raising announcement▼ BadMajor
On August 14, 2013 a California court approved a settlement of a lawsuit filed July 2, 2013 by Ironridge Global IV, which had bought $4,983,075 of L & L's past-due debts from creditors. L & L must issue Ironridge 2,588,888 shares initially, with possible additional shares if the stock price falls below the pre-order closing price during a period tied to $80 million of trading volume, and a final true-up. L & L can end the extra issuances by paying the claim in cash. The filing caps Ironridge at 9.99% ownership (and 19.99% of pre-issuance shares unless approved). This dilutes existing holders and shows the company was behind on debts to creditors.
15 Jan 2013capital raising announcement● Neutral
In January 2013 L & L agreed to sell 505,780 restricted shares plus warrants to one private accredited investor for $875,000 cash. The warrants cover 111,271 shares at $2.10 for three years. The investor also gets piggyback registration rights and an option to join up to 10% of certain future private placements for three years. This dilutes existing holders.
What it means for a shareholder
111,271 new shares at $2.10 to raise about $233,669. That's 0.296% dilution: every existing holder's slice gets 0.296% smaller. If you held $1,000 of shares (476 at the issue price), your slice goes from 0.00127% to 0.00127% of the company. To keep it you'd need 1 more shares - about $2 at the issue price.
Create a free account to see this worked out for your own holding.
13 Nov 2009capital raising announcement● NeutralMajor
On November 6, 2009 L & L sold a second batch of 835,389 units at $3.90 each, raising about $3,257,999.70, on the same terms as the October placement (one share plus 6/10ths of a warrant at $5.62, expiring November 2014; about 501,236 warrant shares). Placement agent fees are 8% cash plus warrants for about 66,832 shares at $6.11. CEO Dickson Lee again escrowed shares (about 395,615), which go to buyers if fiscal 2010 after-tax income before minority interest falls below $32,040,000 or net revenues below $108,118,950. A resale registration is due within 90 days of closing, with penalties of 1% up to 6%. This adds further new shares and warrants, diluting existing holders.
What it means for a shareholder
835,389 new shares at $3.90 to raise about $3.3m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Create a free account to see this worked out for your own holding.
15 Oct 2009capital raising announcement● NeutralMajor
On October 8, 2009 L & L sold 1,371,021 units at $3.90 each to investors for gross proceeds of $5,346,980. Each unit is one new share plus 6/10ths of a warrant to buy a share at $5.62, expiring October 2014 (about 822,613 warrant shares). Laidlaw & Company (UK) was placement agent, taking 8% in cash plus warrants for 109,682 shares at $6.11. CEO Dickson Lee put some of his own shares into escrow, to go to the investors if fiscal 2010 (year to April 30, 2010) after-tax income before minority interest is below $32,040,000 or net revenues below $108,118,950 (each test covers half the shares). The company must file a resale registration within 90 days or pay penalties of 1% of unit price, up to 6%. New shares and warrants dilute existing holders, and the company also reaffirmed its fiscal 2010 earnings guidance (no figures given in this filing).
What it means for a shareholder
1.4m new shares at $3.90 to raise about $5.3m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Create a free account to see this worked out for your own holding.
