10 Mar 2011capital raising announcement▼ BadMajor
On March 4, 2011 Piedmont signed a share exchange agreement with Financial Resolutions of America Corporation (FRAC), a California judgment recovery business. FRAC shareholders would swap all FRAC stock for Piedmont Series C Preferred, with conditions including a Series B preferred raise of $2M-$10M at $1.00 per share, resignation of current officers and most directors, satisfaction of all Piedmont liabilities, and a spin-off of the current exploration and mining business. After a reverse split, the filing contemplates no more than 20,000,000 shares, with FRAC holders at 9,000,000 and existing Piedmont shareholders at 1,000,000. FRAC also bought 200,000 Series A Preferred shares (about 70% of voting power) for a $479,290 promissory note, giving it voting control now. If the deal ends, FRAC returns those shares in exchange for cancelling the note. The deal would change Piedmont from a Nevada gold explorer into a different business, and existing holders would own a small fraction of the result. The deal is not yet complete.