Each one in plain English, with the numbers worked through for a shareholder.
25 Feb 2014capital raising announcement● NeutralMajor
Osage sold 4,900,000 units at $0.90 each, each unit being one share plus a warrant for 0.4 share at $1.80 with a five-year term, raising $4,410,000 so far. Total proceeds could reach $5,400,000. Cabot Lodge Securities is placement agent at an 8% fee. This issues new shares and warrants, diluting existing holders.
What it means for a shareholder
4.9m new shares at US$0.900 to raise about US$4.4m. That's 8.9% dilution: every existing holder's slice gets 8.9% smaller. If you held US$1,000 of shares (1,111 at the issue price), your slice goes from 0.00223% to 0.00203% of the company. To keep it you'd need 109 more shares - about US$98 at the issue price.
1 May 2012capital raising announcement● NeutralMajor
Osage signed a $10,000,000 senior secured note purchase agreement with Apollo Investment Corporation, maturing April 27, 2015 at LIBOR plus 15% (LIBOR floor of 2.0%), with interest paid monthly in cash. The notes are secured by substantially all company assets, including a mortgage on its Oklahoma leases. Apollo received a warrant for 1,496,843 shares at $0.01 and CC Natural Resource Partners got a $100,000 fee and a 250,000-share warrant at $0.01. Nothing was drawn at closing, and each draw must be at least $1,000,000.
This amendment corrects the April 20 filing: the Boothbay $2,500,000 note was issued on April 17, 2012, not 2011, and matures April 17, 2014, not 2013. The other terms are unchanged (18% interest paid monthly, 400,000 shares, overriding royalties in Logan County).
Osage issued a $2,500,000 secured note to Boothbay Royalty Co. at 18% interest, paid in cash monthly. Boothbay also received 400,000 shares plus overriding royalties (1.5% on its section 29 leases and 1.7143% on its section 36 leases in Logan County, Oklahoma). The note is secured by a 5% overriding royalty interest in all of Osage's Logan County leases. The filing gives the maturity as April 17, 2013 and the issue date as April 17, 2011, both of which the next filing corrects.
5 Mar 2009capital raising announcement● NeutralMajor
On March 3, 2009 the company sold half of its 50% Rosablanca stake to Lewis Energy Colombia, leaving ownership at Gold 40%, Lewis 25%, Osage 25% and Empesa 10%, with Lewis operating. Lewis pays first-well costs up to $3,500,000 and gets cash flow equal to twice that amount before Osage receives its 25% share. The company also issued 5,250,000 shares to Mustang Capital Venture, an affiliate of Lewis, diluting existing holders.
The company agreed on July 2, 2008 to pay E. Peter Hoffman, Jr. 1,000,000 shares (valued at $500,000 at the $0.50 closing price) for twelve months of corporate finance advice. Hoffman already held 5,040,000 shares. He later reappears as lender in the April 2011 loan.
On April 8, 2008 the company bought 100% of Cimarrona LLC from Sunstone Corporation, which owns a 9.4% interest in assets in the Guaduas field in Colombia's Middle Magdalena Valley. It paid 2,750,000 shares plus a warrant for 1,125,000 shares at $1.25 (expiring April 8, 2013), and issued 50,000 shares to Energy Capital Solutions for advice, so existing shareholders were diluted. This adds a second Colombian asset alongside Rosablanca.
What it means for a shareholder
1.1m new shares at US$1.25 to raise about US$1.4m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
17 July 2007capital raising announcement● NeutralMajor
On July 16, 2007 the company raised $1,100,000 by issuing an 8% unsecured convertible note, due September 30, 2008, to an institutional investor. The holder can convert it into units of one share plus one $1.25 three-year warrant at $1.00 per unit, so it could add shares if converted; the company may repay in units only at maturity. Viewpoint Securities received $55,000 in commissions.
