6 Apr 2011capital raising announcement▲ Good
More warrant holders exercised, bringing in another $1.8 million, and the company waived a call provision on remaining warrants to keep that funding option open.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
2 Mar 2011material agreement● NeutralMajor
Recovery Energy agreed to buy about 8,060 net acres in Laramie County, Wyoming from Wapiti Oil & Gas for $6.47 million cash plus 2.3 million shares.
3 Feb 2011capital raising announcement● NeutralMajor
Recovery Energy raised $8 million through its first convertible debentures (8% interest, 3-year term, convertible at $2.35/share, steep redemption/make-whole penalties) to fund pending Wyoming/Colorado leasehold acquisitions, and struck a joint development deal with TRW Exploration, which paid $2 million plus a 40% carried interest to fund drilling on two horizontal Niobrara wells - the company's first outside partner sharing drilling risk rather than just providing capital.
4 Jan 2011capital raising announcement▼ BadMajor
Recovery Energy pushed out the maturity on all three Hexagon Investments loans (about $20.4 million outstanding) from December 2011 to September 2012 at no extra cost, but also had to issue Hexagon a previously-promised penalty warrant for 1 million shares because the debt hadn't been repaid by the January 1, 2011 deadline set the prior June.
26 Nov 2010debt financing▼ BadMajor
Recovery Energy agreed to buy roughly 57,000 net acres of Wyoming/Nebraska interests from Edward Mike Davis LLC for $8 million due within a month, securing the payment with 6.7 million escrowed shares. It also gave Grandhaven Energy - an affiliate of its own lender Hexagon Investments - a put option to force the company to buy back royalty interests for up to $2.4 million. By this point Hexagon and Davis together already controlled roughly a third of the company's stock, and the Hexagon loan balance stood near $21 million - insider financing was now deeply intertwined with the company's asset base and capital structure.
8 Oct 2010capital raising announcement▲ Good
Warrant holders exercised 3.4 million warrants at $1.50, bringing Recovery Energy $5.1 million in cash, and received new $2.20 warrants as a sweetener to exercise.
29 June 2010material agreement▼ BadMajor
Recovery Energy signed a stockholders agreement committing its major holders to vote in a board seat designated by lender Hexagon Investments - formalizing Hexagon's governance influence on top of its debt and equity position.
18 June 2010capital raising announcement● Neutral
Recovery Energy hired investor-relations firm MDC Group and PR firm Globe Media, paying both partly in stock and warrants, formalized registration rights for Hexagon Investments' shares, and split the CEO and President roles in its bylaws.
4 June 2010asset acquisition disposition▲ GoodMajor
Recovery Energy closed the $20 million Davis/Spottie land deal and funded it with a $23.85 million institutional private placement (T.R. Winston as placement agent) - its largest capital raise yet. It also used the proceeds leverage to push out the maturity on its two Hexagon Investments loans from December 2010 to December 2011, defusing the refinancing crunch those loans had been building toward, in exchange for more warrants to Hexagon.
20 May 2010debt financing● NeutralMajor
Recovery Energy agreed to buy roughly 60,000 acres of Nebraska/Wyoming oil and gas interests from Edward Mike Davis LLC and Spottie Inc for $20 million plus 2-3 million shares, under a tight closing deadline that escalated the share payment if the company couldn't fund the cash on time.
12 May 2010asset acquisition disposition● Neutral
Recovery Energy sold its two drilling rigs for $700,000 (mostly a promissory note) to Resource Energy, a company affiliated with Matthew Jennings, who along with his affiliates already held about 12.2% of Recovery Energy's stock - exiting the drilling-services side of the business it had floated at its 2009 founding to focus on its own wells.
4 May 2010capital raising announcement● Neutral
Recovery Energy hired C.K. Cooper & Company as a financial advisor for $125,000 cash plus about 31,000 shares of stock.
30 Apr 2010capital raising announcement▼ Bad
Recovery Energy raised $250,000 selling stock at just $0.75/share - a steep drop from the $2.25-$4.00 prices of its recent raises, signaling weakening investor demand for its shares.
20 Apr 2010capital raising announcement▼ BadMajor
Recovery Energy bought six more Wyoming wells and 1,240 acres for $15 million cash plus stock, again from Edward Mike Davis LLC (now a 23.5% shareholder), financed by a third Hexagon Investments loan at 15% interest also maturing December 1, 2010. Hexagon's stake, built entirely from financing-related share and warrant grants, reached 26.2% - stacking three high-rate secured loans onto the same December 2010 maturity wall while ownership concentrates in the lender and asset seller.
25 Mar 2010capital raising announcement● NeutralMajor
Recovery Energy bought four producing wells and 15,900 acres in the Nebraska/Wyoming DJ Basin for $6 million cash plus stock from Edward Mike Davis LLC, now a 14.9% shareholder, financing the cash portion with another Hexagon Investments loan at 15% interest maturing December 2010. Hexagon's stake grew to 13.1% of the company from shares issued alongside its loans.
12 Mar 2010capital raising announcement● Neutral
Recovery Energy raised another $100,000 in a small private stock placement at $2.25/share.
4 Mar 2010debt financing● NeutralMajor
Recovery Energy borrowed $4.5 million from Hexagon Investments at 15% interest, maturing December 2010 and secured by mortgages on its Wilkie field wells, to fund a property repurchase - and paid Hexagon 1 million shares of stock on top. This is the start of a high-cost secured lending relationship, not a change to shareholder rights as classified.
21 Jan 2010capital raising announcement● Neutral
Recovery Energy unwound its Rush Willadel field structure - buying back the 250,000 shares it had issued to the original seller for $750,000 cash, while chairman Roger Parker personally bought the company's remaining 50% interest in those wells for $750,000. The company also raised a further $200,000 selling stock and changed auditors again.
What it means for a shareholder
250,000 new shares at about $0.800 to raise about $200,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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17 Dec 2009capital raising announcement▲ Good
Recovery Energy issued Bel-Car Properties a warrant for 750,000 shares at $3.50 in exchange for a commitment to arrange up to $20 million in financing for future oil and gas purchases - a funding line to support the company's acquisition spree, not yet drawn.
9 Dec 2009asset acquisition disposition● NeutralMajor
Recovery Energy acquired working interests in wells and acreage at Wilkie Field, Nebraska, paying with 1.45 million shares of stock plus a $2.2 million promissory note due within two weeks - expanding its asset base but adding near-term debt.
2 Dec 2009capital raising announcement▲ Good
Recovery Energy raised $400,000 in a small private placement of stock at $4.00/share to fund its early oil and gas buildout.
13 Nov 2009asset acquisition disposition▲ GoodMajor
Recovery Energy made its first oil and gas acquisition, buying three producing wells in Colorado's Rush Willadel field for $750,000 cash plus stock, then immediately sold half the interest back to a third party for $750,000 cash, recovering most of its outlay.
23 Sept 2009auditor change● Neutral
Following the reverse merger, the company dismissed its shell-era auditor Webb & Co. and engaged JSWA, with no disagreements reported - routine cleanup as it became an operating oil and gas company.
22 Sept 2009business combination● NeutralMajor
Universal Holdings, a dormant Nevada shell company, reverse-merged with oil and gas operator Coronado Acquisition and renamed itself Recovery Energy - the transaction that created the company later known as Lilis Energy.