22 Feb 2016securities registration● Neutral
ROYALE ENERGY FUNDS, INC filed notice of an exempt private placement.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
30 Nov 2015material agreement● Neutral
On November 25, 2015 Royale sold 497,948 shares at $0.408 each, with warrants for 248,973 shares at $1.00 for three years (exercisable after one year), raising $203,165 gross. Proceeds go to the December 2015 drilling campaign, operating capital and offering costs. The price is well below $1, consistent with the bid-price problem, and the raise is very small relative to the equity shortfall.
27 Nov 2015securities registration● Neutral
ROYALE ENERGY FUNDS, INC filed a prospectus supplement for an offering off its existing shelf.
13 Nov 2015material agreement● NeutralMajor
On November 10, 2015 Royale agreed to sell its working interest in the Western Block of its Alaska North Slope property (about 39,500 acres) to 70 & 146, LLC for $2 million in cash, keeping a 1⅓% overriding royalty; State of Alaska approval is required. Royale will keep about 57,000 acres and calls the sale a step to strengthen its balance sheet and regain Nasdaq compliance, with part of the proceeds funding a drilling campaign starting December 2015. This appears to replace the earlier Rampart participation agreement on the Western Block; the filing does not mention Rampart.
28 Oct 2015quarterly activities report▼ Bad
ROYALE ENERGY FUNDS, INC reported quarterly revenue of $442 thousand and a net loss of $394 for the period ended 2015-09-30.
9 Oct 2015listing compliance notice▼ BadMajor
On October 6, 2015 Nasdaq staff said Royale still has not regained the $2.5 million equity requirement (after a June 4 notice and an extension to October 5) and the stock faces delisting unless Royale requests a hearing by October 13, which it intends to do. Royale will hold a November 19, 2015 shareholder meeting to vote on a reverse split between 1.5-for-1 and 5-for-1 and raising authorized shares from 20 million to 30 million. Appointing Ronald Verdier on September 24 as an independent director restored the audit committee, but the majority-independent board requirement is still unmet. The stock stays listed pending the hearing.
21 Sept 2015listing compliance notice▼ Bad
On September 11, 2015 Nasdaq said Royale breaches board-independence and audit-committee rules after Jonathan Gregory was appointed CEO and Vice-Chair and Tony Hall resigned from the board on September 10. The board has six directors, two independent. Royale must submit a plan by October 26, 2015 and is seeking to add independent directors. This adds a third listing issue, and Gregory's CEO appointment is a leadership change.
4 Sept 2015listing compliance notice▼ BadMajor
On August 31, 2015 Nasdaq notified Royale that its stock has failed the $1 minimum bid price rule. Royale has until February 27, 2016 to fix it, possibly with a further 180 days, and says it may consider a reverse stock split. This is a second, separate listing problem on top of the equity shortfall.
4 Aug 2015securities registration● Neutral
ROYALE ENERGY FUNDS, INC filed notice of an exempt private placement.
4 Aug 2015quarterly activities report▼ Bad
ROYALE ENERGY FUNDS, INC reported quarterly revenue of $449 thousand and a net loss of $928 thousand for the period ended 2015-06-30.
21 May 2015securities registration● Neutral
ROYALE ENERGY FUNDS, INC filed a prospectus supplement for an offering off its existing shelf.
21 May 2015material agreement● NeutralMajor
On May 20, 2015 Royale signed a new at-the-market sales agreement with Roth Capital Partners to sell up to $7,726,103 of common stock, with a 3.5% commission. Proceeds are meant for developing Alaskan properties and working capital; issuance needs Nasdaq approval and Royale need not sell any. It follows the April 2015 equity shortfall notice and the earlier 2014 Roth program, and any sales would dilute shareholders.
14 May 2015securities registration● Neutral
ROYALE ENERGY FUNDS, INC amended a filing by which it registered a securities offering with the SEC using its shelf eligibility.
13 May 2015quarterly activities report▼ Bad
ROYALE ENERGY FUNDS, INC reported quarterly revenue of $470 thousand and a net loss of $1.1 million for the period ended 2015-03-31.
28 Apr 2015securities registration● Neutral
ROYALE ENERGY FUNDS, INC amended a filing by which it registered a securities offering with the SEC using its shelf eligibility.
22 Apr 2015securities registration● Neutral
ROYALE ENERGY FUNDS, INC amended a filing by which it registered a securities offering with the SEC using its shelf eligibility.
13 Apr 2015listing compliance notice▼ BadMajor
On April 7, 2015 Nasdaq told Royale it fails the $2.5 million minimum stockholders' equity rule, because the 2014 10-K showed equity of $(1,141,227). Royale has to submit a compliance plan by May 22, 2015, and says it plans to raise equity, having filed a Form S-3 on April 2, 2015. This revives the equity-listing problem seen in 2009.
2 Apr 2015securities registration● Neutral
ROYALE ENERGY FUNDS, INC registered a securities offering with the SEC using its shelf eligibility.
20 Nov 2014auditor change● Neutral
On November 19, 2014 Padgett, Stratemann & Co., LLP ended its engagement as Royale's auditor (it had audited 2007 through 2013), and Royale hired SingerLewak LLP the same day. The filing reports no disagreements with Padgett. The company's address is now El Cajon, California.
6 Nov 2014quarterly activities report● Neutral
ROYALE ENERGY FUNDS, INC reported quarterly revenue of $677 thousand and net income of $206 thousand for the period ended 2014-09-30.
4 Nov 2014securities registration● Neutral
ROYALE ENERGY FUNDS, INC filed notice of an exempt private placement.
1 Aug 2014quarterly activities report● Neutral
ROYALE ENERGY FUNDS, INC reported quarterly revenue of $919 thousand and net income of $237 thousand for the period ended 2014-06-30.
13 May 2014quarterly activities report▼ Bad
ROYALE ENERGY FUNDS, INC reported quarterly revenue of $979 thousand and a net loss of $767 thousand for the period ended 2014-03-31.
7 Apr 2014material agreement● NeutralMajor
On April 4, 2014 Royale signed a sales agreement with Roth Capital Partners to sell up to $10,000,000 of common stock at the market, with Roth taking a 3.5% commission. Proceeds are intended for acquiring and developing Alaskan properties and working capital; Royale need not sell any shares, and issuance needs Nasdaq approval. The amount actually sold is not stated, but any sales would dilute shareholders.
4 Apr 2014securities registration● Neutral
ROYALE ENERGY FUNDS, INC filed a prospectus supplement for an offering off its existing shelf.
18 Mar 2014securities registration● Neutral
ROYALE ENERGY FUNDS, INC filed notice of an exempt private placement.
22 Jan 2014financial restatement▼ BadMajor
On January 16, 2014 Royale said its 2012 and 2011 financial statements (and 2013's first three quarterly reports) should no longer be relied on, after SEC staff comments led it to change how it accounts for sales of working interests to drilling participants. For Dec 31, 2012, total assets fall from $17.5M to $13.1M and stockholders' equity from $662,593 to a deficit of $(3,771,018); 2012 net loss moves only from $(11,961,026) to $(11,908,835). Restated 9/30/2013 equity is $320,201 versus $4,837,119 previously. Restated 10-K is planned before March 31, 2014. This is a second restatement after the 2010 one, and it sharply weakens the equity position tied to the Nasdaq equity requirements.
30 Dec 2013asset acquisition disposition● Neutral
On December 24, 2013 Royale bought commercial property in San Diego from North Island Financial Credit Union for $2,000,000: $500,000 in cash and $1,500,000 borrowed from an unaffiliated financial institution on a note secured by the property. This adds a new secured loan.
18 Dec 2013securities registration● Neutral
ROYALE ENERGY FUNDS, INC filed notice of an exempt private placement.
21 Oct 2013quarterly activities report● Neutral
ROYALE ENERGY FUNDS, INC reported quarterly revenue of $659 thousand and net income of $352 thousand for the period ended 2013-09-30.