ADX Energy Ltd (ASX:ADX): announcements explained, share price and valuation

Announcements, explained

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

11 Jan 2008capital raising announcement▲ GoodMajor

AuDAX placed 16,666,666 shares at 30 cents to raise about $5m from sophisticated investors. Funds go to the Tunisian, Italian and Romanian acquisitions, Cooper Basin and working capital. This is well above the 7c placements of 2007.

What it means for a shareholder

16.7m new shares at A$0.300 to raise about A$5.0m. That's 9.8% dilution: every existing holder's slice gets 9.8% smaller. If you held A$1,000 of shares (3,333 at the issue price), your slice goes from 0.00216% to 0.00195% of the company. To keep it you'd need 360 more shares - about A$108 at the issue price.

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17 July 2007capital raising announcement● NeutralMajor

AuDAX placed 17.35m shares at 7 cents to sophisticated investors, raising about $1.2m with no fees. Funds cover its share of the extra Vanessa completion costs and working capital, the same 7c price as the February placement.

What it means for a shareholder

17.4m new shares at A$0.070 to raise about A$1.2m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (14,286 at the issue price), your slice goes from 0.0118% to 0.0103% of the company. To keep it you'd need 2,054 more shares - about A$144 at the issue price.

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9 Feb 2007capital raising announcement● NeutralMajor

AuDAX placed 15.5 million shares at 7 cents to raise about $1.085m, to fund its share of the Sarahlyn and Vanessa wells and working capital. Dr Peter Barber joins as technical non-executive director, replacing Ian Chalmers. The price is well below January 2006's 16 cents.

What it means for a shareholder

15.5m new shares at A$0.070 to raise about A$1.1m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (14,286 at the issue price), your slice goes from 0.0136% to 0.0119% of the company. To keep it you'd need 2,110 more shares - about A$148 at the issue price.

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11 Jan 2006capital raising announcement● NeutralMajor

AuDAX placed 6.9 million shares at 16 cents with free attaching options exercisable at 20 cents by 31 December 2008, raising $1,104,000 from sophisticated investors. Funds go to further Cooper Basin drilling and seismic.

What it means for a shareholder

6.9m new shares at A$0.160 to raise about A$1.1m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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