Each one in plain English, with the numbers worked through for a shareholder.
3 May 2016capital raising announcement▼ Bad
On April 26, 2016, a $58,000 convertible note held by Vis Vires Group was sold to FirstFire Global Opportunities Fund for $73,795 in cash. Virtus issued FirstFire a new 8% note with $73,795 principal, maturing September 5, 2016, on the same terms as the original. It converts at 61% of the average of the three lowest trading prices in the prior ten trading days (4.99% holder cap), so it can dilute existing shareholders. This is another convertible note on top of the Himmil notes; the filing does not say Virtus received any new cash.
On October 7, 2015 Virtus sold an institutional investor a 7% convertible note with $600,000 principal for a $375,000 purchase price (after a $25,000 discount), maturing October 7, 2016. $200,000 of principal is cancelled if a resale registration is filed and declared effective on time. It converts at the lower of 65% of a recent low-price average or $0.30 (50% if registration lapses), so it can dilute existing shareholders. This adds to the earlier convertible notes from the Himmil financing.
Virtus agreed to issue up to $1,150,000 of 7% senior convertible notes to an institutional investor, and on May 22, 2015 sold an initial note of $350,000 principal for $250,000. Further notes of $500,000 (for $250,000, on June 21, 2015) and $300,000 (for $300,000, after the resale registration statement becomes effective) are subject to conditions. The notes convert at the lower of 65% of a recent low-price average or $0.75, so existing shareholders can be diluted, and the company must register the resale shares by July 6, 2015. This is Virtus's first disclosed debt financing, and it adds funding that could be used toward the drilling obligations.
31 Jan 2014capital raising announcement● NeutralMajor
Virtus agreed (Nov 14, 2013) to buy an 87.5% working interest in leases of about 36,787 acres in Iron County, Utah from bankrupt Tidewater Oil & Gas for $290,000 in instalments, approved by the bankruptcy court on December 11, 2013. It also committed to pay 100% of an estimated $2.5 million test well, or forfeit the leases. It sold 250,000 shares to Fieldstone Industries for $100,000 ($0.40 a share), and ended the Pioneer deal, forfeiting the $30,000 already paid; the company said Tidewater was the better investment. This replaces the Pioneer deal from October 2013.
