Each one in plain English, with the numbers worked through for a shareholder.
5 Aug 2016capital raising announcement● NeutralMajor
On August 2, 2016 Royale raised money in two private deals: 2,392,500 units (one share plus a warrant for one-fifth of a share) at $0.40 each for $957,000, and $1,580,000 of one-year unsecured convertible notes. The notes convert into 3,950,000 shares only if shareholders approve, so existing holders face dilution from the new shares, the note conversion and the warrants (exercisable at $0.80, for 1,185,000 shares on the notes). The filing says the money is for drilling, costs of the proposed merger with Matrix Oil Corporation, and general purposes. This is the first mention of the Matrix merger in the record so far.
On July 14, 2016 Royale issued 600,000 shares to Chairman Harry E. Hosmer as a final payment of $270,000 under existing consulting and expense reimbursement arrangements. The price was set from the July 7, 2016 stock price. This adds shares to the count and settles the arrangement.
Between January 23 and March 28, 2012 six directors exercised options to buy a total of 165,188 shares, 43,782 at $3.25 and 121,406 at $3.50. The options were originally granted as pay for board service. This adds a modest number of new shares.
What it means for a shareholder
165,188 new shares at US$3.25 to raise about US$536,861. That's 1.5% dilution: every existing holder's slice gets 1.5% smaller. If you held US$1,000 of shares (308 at the issue price), your slice goes from 0.0028% to 0.00276% of the company. To keep it you'd need 5 more shares - about US$16 at the issue price.
21 Oct 2009capital raising announcement● NeutralMajor
On October 16, 2009 Royale agreed to sell 623,053 shares at $3.21 to an institutional investor (closed October 20) for about $2.0 million gross and about $1.88 million net, plus warrants for 342,679 shares at $3.53 for 5 years. The placement agent also received warrants for 33,994 shares at $3.53. Royale says the money will speed up drilling after a recent discovery, including the Wylie well starting that week and permitting for the Vann and Magnum prospects. The investor (Cranshire, per the waiver exhibit) again waived the upward share adjustment on its 2008 warrant. This is a second raise after the August placement and adds further dilution potential through the warrants.
What it means for a shareholder
623,053 new shares at US$3.21 to raise about US$2.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
6 Aug 2009capital raising announcement● NeutralMajor
On August 4, 2009 Royale agreed to sell 552,764 shares at $1.99 each to one institutional investor, closing August 5, for about $1.1 million gross and about $999,000 net. The investor also received four series of warrants (329,850 at $2.19; 1,808 at $2.19; 511,628 at $2.15; 306,977 at $2.19, the last only if the Series B warrants are exercised), and the placement agent got warrants for 33,166 shares at $1.99. Royale says the money will go to developing its Sacramento basin properties and it must file a resale registration within 30 days of closing. Cranshire Capital waived the upward share adjustment on its June 2008 warrant, whose exercise price resets to $1.99 from $7.30 as a result of this sale. This is the capital raise the board was weighing earlier in the year, and it adds dilution risk through the warrants.
What it means for a shareholder
552,764 new shares at US$1.99 to raise about US$1.1m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
12 June 2008capital raising announcement● NeutralMajor
On June 10, 2008 Royale sold 547,945 new common shares at $7.30 to one institutional investor for about $4 million gross (about $3.725 million net), and also issued a warrant for 191,781 shares at $7.30 expiring June 10, 2013. The placement agent got warrants for 32,877 shares, and the agreements include provisions for issuing additional shares if later dilutive issuances occur. The company says proceeds are for general corporate purposes including buying oil and gas properties, and its press release mentions more activity in the Rio Bravo and Moon Canyon (Uintah Basin) fields. This dilutes existing shareholders but adds cash.
What it means for a shareholder
547,945 new shares at US$7.30 to raise about US$4.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
