Silver Falcon Mining, Inc.: announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

22 Feb 2013capital raising announcement● NeutralMajor

On February 12, 2013 the company hired Omni View Capital for one year to advise on capital structuring (including possible stock splits), an uplisting to a national exchange, board candidates and deal negotiation. Omni was to invest at least $100,000 in a bridge convertible debt financing by March 1, 2013, and gets restricted shares equal to 2.45% of the fully diluted Class A stock on signing, with another 2.45% if the company raises at least $5 million. Shareholders face dilution from these share issuances; the mention of a bridge financing is the first reference to one in the context.

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19 Oct 2011capital raising announcement▲ Good

The company says it signed a supplemental refining agreement with Republic Metals Corporation to analyse, refine and buy its bullion dore, with a first shipment planned for October 2011 that it says will start a revenue stream. The CEO says milling proceeds should make the company less dependent on private placements; no amounts are given, and this is an expectation, not a result. This follows the mill and assay lab build-out and is the first stated sales route for the mill's output.

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11 Apr 2011capital raising announcement● NeutralMajor

The company signed an equity line with Centurion Private Equity under which Centurion committed to buy up to $7,200,000 of its common stock, in puts of up to $300,000 each, at the lesser of 97% of market price or market price minus $0.01. Drawing requires an effective resale registration statement, and the company issued Centurion 136,147 shares (valued $20,000) as a document fee and 1,190,083 shares (valued $144,000) as a commitment fee. For shareholders this is a funding source that is dilutive because shares are sold at a discount to market.

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