Each one in plain English, with the numbers worked through for a shareholder.
24 July 2015capital raising announcement▼ BadMajor
On July 15, 2015 Rimrock Gold agreed with Redwood Fund and TJC Trading that TJC would buy $10,000 of Redwood's April 2014 $100,000 convertible note, with an option to buy more $10,000 pieces for 120 days. The company swapped that piece for a new $10,000 TJC note at 15% interest, and also issued TJC a separate note of up to $200,000 at 15% (6-month maturity per payment), of which $10,000 has been received. Both notes convert into shares at 35% of the average of the three lowest trading prices over 25 trading days (a 65% discount), capped at 9.99% ownership, so conversions could add many new shares. This continues the pattern of discount-priced convertible financing seen with Redwood and KBM.
17 July 2015capital raising announcement▼ BadMajor
On April 22, 2015 the company settled a dispute with Uptick Capital and Zahav Resources over a March 1, 2013 consulting agreement. It agreed to pay $25,502.59 plus legal fees (of which $7,500 had been paid), issue 4,000,000 common shares, and issue 400 new Series B preferred shares. CEO Jordan Starkman received a further 100 of the 500 Series B shares, which carry votes and each convert into 0.10% of outstanding common stock. The company also filed on July 13, 2015 to raise authorized common stock from 1,900,000,000 to 2,900,000,000. The filing does not say why; the very large authorized share count suggests heavy dilution has already occurred or is expected (inference).
On September 30, 2014 the company amended the Redwood note and warrant from April: the conversion price drops from $0.075 to $0.03 and the warrant price from $0.10 to $0.04, the maturity is changed to the earlier of six months from the amendment or 30 days before the KBM note converts, and Redwood waives past defaults. The filing does not say why. On October 21, 2014 the company also closed a second KBM note for $42,500 (8%, maturing July 3, 2015, convertible after 180 days at 58% of the lowest-three-price average, 4.99% ownership cap). Both changes make further dilution more likely for existing shareholders (inference).
On August 29, 2014 the company borrowed $88,500 from KBM Worldwide through an 8% convertible note maturing May 27, 2015. After 180 days KBM can convert into shares at 58% of the average of the three lowest trading prices over the prior 20 trading days (a 42% discount), so conversions could dilute shareholders, subject to a 9.99% ownership cap. Unpaid amounts carry 22% default interest, and the company gave KBM a right of first refusal on financings under $100,000 for six months. This is a new lender after the Redwood note of April 2014.
On April 14, 2014 the company sold Redwood Fund LP a $100,000 convertible note (12% interest, due in six months, convertible after 120 days at $0.075 per share) plus a five-year warrant for 100,000 shares at $0.10. Redwood may within 30 days buy a second $150,000 note with a warrant for up to 150,000 shares. The conversion price is below the $0.20 paid in the February 2013 placement, and the warrant price adjusts downward if shares are issued cheaper, so further dilution is possible. The default interest rate is the lesser of 20% per annum or the legal maximum.
The company changed its name to Tucana Lithium Corp. on May 3, 2011 and issued a $150,000 10% convertible debenture, due in twelve months and convertible at $0.15 per share, to Alain Champagne. The press release says the debenture represents the balance of payments for the Abigail property, and that exploration is planned to start in the first weeks of June. It continues the Abigail purchase and adds potential dilution if converted.
3 Dec 2010capital raising announcement● NeutralMajor
On November 29, 2010 the company agreed to buy 100% of the Abigail Lithium Project (222 cells, 11,844 hectares, James Bay, Quebec) from Alain Champagne and others. It issued 15,000,000 shares and will pay $250,000 in cash ($100,000 at 90 days, $150,000 at 180 days after closing), commit to at least $300,000 of exploration starting by May 16, 2011, and pay a 3% royalty on any commercial production. This moves the company from the failed technology plan into mineral exploration.
9 July 2010capital raising announcement● NeutralMajor
Now named Oteegee Innovations, the company closed a share exchange on July 6, 2010: it issued 61,647,250 restricted shares (on May 11, 2010) for 40% of Oteegee International Holdings, a Hong Kong company holding international marketing and distribution rights to Oteegee IPR technologies. It also agreed to raise 'First Phase Funding' within thirty days; this was the first of three agreements expected under the Grail letter of intent.
