Each one in plain English, with the numbers worked through for a shareholder.
20 July 2021capital raising announcement▲ GoodMajor
Eight investors exercised warrants for 1,435,000 shares at $0.20 cash, and five Series A Preferred holders converted 192,269 preferred shares (about 79% of the 2019 issuance) plus $356,123 of accrued unpaid dividends into common stock — real cash coming in at a much healthier price than the 2017-2018 toxic notes, and most of the 2019 preferred restructuring converting through, though the unpaid dividends still point to ongoing cash constraints.
Sold AJB Capital Investments a $200,000 (net $184,000) toxic convertible note priced at 90% of the lowest trading price over the preceding 20 days, plus 266,667 shares as a commitment fee — evidence the company remained financially active (not fully dormant) in early 2021 and still reliant on predatory financing.
Issued 500,000 shares to two investor-relations firms for promotional services, around the time the company was defaulting on other obligations and losing its Mexican production assets.
Restructured $2,422,694 of accumulated debt owed to five investors into 242,270 shares of new 10%-coupon Series A Convertible Preferred Stock (convertible at $1.00/share) — a major deleveraging that swapped a crushing, dilutive debt load for equity with full voting rights.
Raised $205,000 through Series 2018A convertible notes and a further $160,700 through short-term notes carrying a punishing 36% annual interest rate — financing terms that signal severe financial distress.
Negotiated temporary conversion-price floors ($0.018/share through Sept 30, 2018) with both toxic noteholders EMA Financial and Auctus Fund to slow the dilution, while simultaneously selling a fourth toxic note ($38,000) to fund operations.
30 July 2018capital raising announcement▼ BadMajor
President W. Pierce Carson converted $98,100 of unpaid accrued salary and cash advances into stock and received a further restricted stock award, while the company sold yet another toxic convertible note ($63,000) — signs of both cash-strapped operations and continued reliance on predatory debt.
Sold Auctus Fund a $170,000 10% convertible note priced to convert at the lesser of a fixed reference price or 65% of the lowest trading price in the 25 days before conversion — a classic 'toxic' death-spiral structure that would drive severe future dilution.
Granted 3.6 million stock options to insiders and a 4-million-share restricted award to President W. Pierce Carson, and amended its Articles of Incorporation to raise authorized capital to 1 billion common shares and 25 million preferred shares — a large capacity increase that would shortly be needed for a wave of toxic convertible-note dilution.
Clifford Neuman converted a further $20,000 of his note into 2,000,000 shares at $0.01, was paid $8,850 cash, and assigned his remaining ~$6,000 note balance to Bright Star International.
Merged majority-owned subsidiary Gulf+Western Industries into a wholly-owned merger subsidiary, eliminating the minority interest (held by incoming President W. Pierce Carson) in exchange for 8,623,957 shares of Magellan stock — an internal reorganization coinciding with Carson taking a leading role at the company.
Noteholder Clifford L. Neuman converted about $23,400 of principal and interest on a $51,532 promissory note into 600,000 shares, leaving roughly $33,000 still outstanding.
Raised $30,000 at $0.15/share — a much higher price than the $0.01 rounds earlier in the year, reflecting an improved share price following the Silver District acquisition.
30 Aug 2012capital raising announcement▲ GoodMajor
Optioned the Silver District property (108 unpatented claims plus patented/state leases, over 2,000 acres in La Paz County, Arizona) from Columbus Silver for staged payments of $63,200 now, $50,000 by year-end 2012, $400,000 by end-2013 and $500,000 by end-2014 — the company's first real mineral asset, with the initial payment funded by a matching equity sale.
Raised $15,000 (1,500,000 shares at $0.01) from a single accredited investor.
What it means for a shareholder
1.5m new shares at US$0.010 to raise about US$15,000. That's 3.8% dilution: every existing holder's slice gets 3.8% smaller. If you held US$1,000 of shares (100,000 at the issue price), your slice goes from 0.263% to 0.253% of the company. To keep it you'd need 3,947 more shares - about US$39 at the issue price.
Raised another $25,000 (2,500,000 shares at $0.01), continuing the same pattern of small single-investor rounds.
What it means for a shareholder
2.5m new shares at US$0.010 to raise about US$25,000. That's 6.2% dilution: every existing holder's slice gets 6.2% smaller. If you held US$1,000 of shares (100,000 at the issue price), your slice goes from 0.263% to 0.247% of the company. To keep it you'd need 6,579 more shares - about US$66 at the issue price.
Raised a further $25,000 (2,500,000 shares at $0.01) from a single accredited investor for working capital.
What it means for a shareholder
2.5m new shares at US$0.010 to raise about US$25,000. That's 6.2% dilution: every existing holder's slice gets 6.2% smaller. If you held US$1,000 of shares (100,000 at the issue price), your slice goes from 0.263% to 0.247% of the company. To keep it you'd need 6,579 more shares - about US$66 at the issue price.
Raised $25,000 in cash plus converted a $25,000 insider advance from principal shareholder John D. Gibbs into stock (5,000,000 shares at $0.01) — typical of the tiny insider-funded rounds keeping this early-stage exploration shell alive.
