Past year: ▲ 0%(0.01c – 0.01c USD)
Each one in plain English, with the numbers worked through for a shareholder.
9 Mar 2006capital raising announcement▼ Bad
On March 1, 2006 the company issued 1,200,000 restricted shares to a consultant. 600,000 are released when the shares list on the American Stock Exchange, and the other 600,000 are released at 1/6 per month while the agreement lasts. This adds to the share count, so existing holders are diluted slightly.
19 Oct 2005capital raising announcement● NeutralMajor
On October 14, 2005 the company closed $3,350,000 of senior secured convertible promissory notes, with an option for holders to buy up to $3,350,000 more. The notes pay 8% dividends (in cash or shares at the company's option) and convert at a fixed $0.315 per share, and investors also get five-year warrants at $0.63 per share. The company expects to use net proceeds for drilling costs and general working capital, which may help fund its share of the Kansas drilling program (an inference). Conversion and warrants could dilute existing shareholders.
10 Dec 2004capital raising announcement▼ BadMajor
An amended version of the November 2004 Cornell Capital financing report. It lowers the price Cornell pays under the $10,000,000 equity line from 100% to 98% of the lowest volume weighted average price, and changes the debenture conversion price to the lesser of 120% of the closing bid price as of the date of the agreement or 80% of the lowest closing bid over the five days before conversion. This is more dilutive for shareholders than the original description. The exhibit list now names Silver Star Energy instead of Sonoran Energy.
9 Dec 2004capital raising announcement● NeutralMajor
On November 24, 2004 the company signed a Standby Equity Distribution Agreement letting it sell up to $10,000,000 of stock to Cornell Capital Partners at its discretion, but only after a registration statement is declared effective. It paid Cornell a $350,000 commitment fee in shares and received a $750,000 convertible debenture (5% interest, three years), with a second $750,000 tranche due on filing a registration statement. Shareholders face dilution if shares are sold or the debenture converts at a price tied to the market. The exhibit list names 'Sonoran Energy, Inc.' rather than Silver Star, which looks like a drafting error (an inference), and the next filing corrects it.
