Each one in plain English, with the numbers worked through for a shareholder.
5 Aug 2016capital raising announcement▼ Bad
On August 2, 2016 Tonaquint bought another additional secured note under the April 2016 settlement, with $170,000 principal for $150,000 (a $15,000 discount plus $5,000 toward the lender's costs). Terms mirror the May note: 12%, matures February 28, 2017, convertible from January 2, 2017 at $0.015 (lower if market cap falls below $4,000,000), $55,000 monthly installments from December 31, 2016, secured on all assets and the Sino-Top equity. The filing does not state the amount received this time, only the purchase. This is a further round of the same financing, adding more possible dilution.
Under the April 2016 Tonaquint settlement, the company issued an additional secured note on May 25, 2016 with $170,000 principal for $150,000 (a $15,000 discount plus $5,000 toward the lender's costs), and received the $150,000 on May 26. The note pays 12%, matures February 28, 2017, is convertible from November 26, 2016 at $0.015 (lower if market cap falls below $4,000,000), has $55,000 monthly installments from December 31, 2016 payable in cash or shares, and is secured on all assets and the Sino-Top equity. This continues the Tonaquint financing and adds more potential share issuance.
On April 7-8, 2016 the company and Tonaquint agreed a settlement: a new secured convertible note of $6,836,556.53 replaced the previous note, which had a $9,093,950 balance, with $2,677,393.47 forgiven and $400,000 in cash paid to the company. The new note carries 12% interest, matures March 31, 2019, is secured on all company assets and on its Sino-Top equity, and is convertible at $0.015 per share from December 31, 2016, with a lower price if market capitalization falls below $4,000,000. The company must reserve 150,000,000 shares for conversions, Tonaquint gets a board observer and a right to take part in 50% of future financings, and the company signed a confession of judgment. This replaces the December 2012 payoff arrangement with Tonaquint, ends Tonaquint's court action in Utah, and raises dilution risk for shareholders.
On April 19, 2011 the company agreed with JMJ Financial to sell convertible notes with a face amount of $3,150,000, of which $3,000,000 goes to the company and the rest covers fees and expenses to JMJ. The first note brings in $1 million in staged payments tied to registration steps and conditions, and later notes of $500,000 each ($2,000,000 in total, secured) follow over three years. The notes convert at 75% of the average of the three lowest closing prices in the prior 20 days, so conversion would add shares at a discount. Proceeds are planned for a Canadian stock exchange listing, work at the Erbahuo silver properties in China, and general corporate purposes.
18 Feb 2011capital raising announcement● NeutralMajor
On February 15, 2011 the company sold Tonaquint, Inc. a secured convertible note with a $2,766,500 maturity amount (5.5% interest, due in 48 months), a warrant for 8.6 million shares at US$0.50 over three years, and 50,000 shares. Funding is $2,500,000 in total, but only $500,000 is cash at closing; the other $2,000,000 is ten $200,000 notes from the investor that are paid later. The note converts after six months at 70% of a low recent average price, so conversions would add shares at a discount; the investor's holding is capped at 9.99%.
On January 27, 2011 a California court approved a settlement of a $405,981.49 claim by Socius CG II, which had bought the claims from seven creditors of the company. The company issued 9,000,000 shares (about 8.28% of shares outstanding), with a later adjustment based on the stock price over 20 trading days that could mean more shares issued or some returned; Socius's holdings are capped at 9.99%. The debt is settled in stock, diluting existing holders.
11 July 2008capital raising announcement▼ BadMajor
On July 10, 2008 the company settled a dispute with Alpha Capital Anstalt, which had invested under the November 2, 2006 subscription agreement (the $500,000 placement). It will issue 3,000,000 shares (effective price cut to $0.15 per share through anti-dilution protection, plus 500,000 shares for the Class A and B warrants, plus 53,266 extra shares) and pay $25,000 in cash, and the company also gives up the $75,000 warrant exercise price. The subscription agreement ends and the lawsuit is dismissed once these steps are done. Existing shareholders are diluted, and the company agreed not to sell shares below $0.15 until Sept 30, 2008 and not to do a reverse split for six months.
The company issued a press release on October 17, 2007 titled 'Silver Dragon Resources Inc. Closes $1 Million Private Placement'. The 8-K itself only attaches the release and gives no terms, price or share numbers, so the details are not in this filing. It continues the pattern of funding through share sales.
Under a subscription agreement dated November 7, 2006 the company raised $500,000 by selling 500,000 units at $1.00, with Class A ($2.00) and Class B ($5.00) warrants over five years and Class C warrants for 1,000,000 shares at $1.00 over one year, which the company can force to be exercised if conditions are met. It paid its broker $35,000 and must file a resale registration statement by December 22, 2006, with penalties if it is late or not effective by March 12, 2007. Exercise of the warrants would add shares.
What it means for a shareholder
500,000 new shares at $1.00 to raise about $500,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
On September 15, 2006 the company raised another US$2,000,000 by selling 2,000,000 units at US$1.00, each with a share and warrants at $2.00 and $5.00 exercisable over two years. The proceeds are earmarked, as in June, for the Cerro Las Minitas and Sino Silver transactions and for fees and administrative costs. It continues the pattern of funding through new share issues.
What it means for a shareholder
2.0m new shares at US$1.00 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.
13 June 2006capital raising announcement● NeutralMajor
In June 2006 the company raised US$3,000,000 by selling 3,000,000 units at US$1.00, each with a share and warrants at US$2.00 and US$5.00. The money is earmarked for the Cerro Las Minitas transactions, the Sino Silver transaction, and legal, accounting and administrative costs. New shares dilute existing holders, but the funds go toward the pending Sino Silver payments.
What it means for a shareholder
3.0m new shares at US$1.00 to raise about US$3.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
