Sooner Holdings, Inc.: announcements explained, share price

Announcements, explained

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

23 Oct 2008capital raising announcement● NeutralMajor

On October 21, 2008 the $100,000,000 Dynamic Fuels bonds closed and the company issued Tyson a warrant for up to 8,000,000 shares at $.01 each, expiring in four years, under the June 30 Warrant Agreement. This funds the first Dynamic Fuels plant and dilutes shareholders if exercised; the filing does not say how the letter of credit was split between the company and Tyson.

What it means for a shareholder

8.0m new shares at $0.010 to raise about $80,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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7 July 2008capital raising announcement● NeutralMajor

On June 30, 2008 the company and Tyson agreed that Tyson will provide credit support for any part of the company's 50% share ($50,000,000) of a $100,000,000 letter of credit backing Dynamic Fuels' Louisiana Go-Zone bonds that the company cannot arrange itself. Tyson would get warrants at 0.16 shares per dollar of support, exercisable at $.01 per share, expiring four years from issuance. The company says it is still in talks with third parties for the support; the final amount is set when the bonds are authorized, expected in Q3 2008. This is dilutive to shareholders if used.

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25 June 2007capital raising announcement▲ GoodMajor

On June 22, 2007 the company signed agreements with Tyson Foods to form Dynamic Fuels, LLC, owned 50/50, to build plants using its Biofining technology (renewable fuel from fats and vegetable oils). The first plant is expected in the South Central US, about 78 million gallons a year starting 2010, at about $150 million total cost; the company plans to fund its 50% share from capital markets financing it expects to seek, and each side puts in $4.25 million initially for site selection and engineering. This is a new line of business alongside the gas-to-liquids and coal work. The filing text is truncated, so further terms are not covered here.

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