Each one in plain English, with the numbers worked through for a shareholder.
23 Dec 2009capital raising announcement● Neutral
On December 23, 2009 the company announced the December placement closed, upsized from 8.57 million to 9.71 million shares at US$1.05, for gross proceeds of US$10.2 million. This resolves the pending closing and issues about 1.14 million more shares than first announced.
What it means for a shareholder
9.7m new shares at US$1.05 to raise about US$10.2m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
18 Dec 2009capital raising announcement● NeutralMajor
On December 16, 2009 the company agreed to sell 8,571,443 shares at US$1.05 to accredited investors for about US$9 million in a private placement. Closing was expected around December 22, 2009, subject to NYSE Amex approval. This is another dilutive raise at a price well below the 2008 placements.
What it means for a shareholder
8.6m new shares at US$1.05 to raise about US$9.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
On November 27, 2009 the Audit Committee concluded the quarter ended July 31, 2009 will be restated, to correct stock compensation expense for options forfeited by employees who left the company. The company says cash flows and the resource base are unaffected. It adds a second restatement to the July 2009 one, though a different issue and period.
This amendment only corrects an EDGAR submission error: the July 17, 2009 8-K was not tagged as Item 4.02. It makes no other content changes, so it carries no new substance beyond the restatement announcement already reported.
On July 14, 2009 the Audit Committee said financial statements for the years ended April 30, 2007 and 2008 and quarters from July 2007 to January 2009 will be restated and should not be relied on, along with the earlier auditors' reports (Pannell Kerr Forster for 2007, KPMG for 2008). The change concerns how the August 2006 purchase of the remaining 35.92% of OQI Sask was valued, by excluding OQI Sask options from the price paid. The company says cash flows and the resource base are unaffected, and the 10-K for April 30, 2009 was delayed to July 29. The filing itself raises risks including delisting and shareholder litigation.
On April 30, 2009 the company signed an agency agreement with Genuity, TD Securities, Canaccord, Dundee and RBC to sell up to 30,500,000 units at US$0.85 (US$25,925,000 total). Each unit has one share and a half-warrant exercisable at US$1.10 for two years, with agent fees of US$1,296,250 and a 15% over-allotment option. The price is far below the US$3.50 and US$4.20 paid in the 2008 placements, so this is heavily dilutive for existing holders (inference: the lower price reflects a fall in the share price since 2008).
7 Oct 2008capital raising announcement● NeutralMajor
On October 3, 2008 both flow-through placements closed. The UTA placement issued 6,008,156 shares at CDN$3.675 (5,142,857 to UTA-linked funds, 865,299 to company affiliates and employees) for CDN$22.1 million. The underwritten placement issued 4,800,000 shares for CDN$17.6 million, with CDN$970,200 in underwriter fees (TD Securities led). Both were sold to non-U.S. persons and are unregistered, which resolves the open question of whether the UTA deal would close.
What it means for a shareholder
6.0m new shares at C$3.67 to raise about C$22.1m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
On September 23, 2008 the company agreed a second, underwritten flow-through placement of 3,266,000 shares at CDN$3.675 (US$3.50), then raised it to 4,800,000 shares after oversubscription, for CDN$17.6 million gross. It is on top of the September 22 UTA placement (now described as up to 6,642,857 shares, up to US$23.3 million), and closing is expected around October 3, 2008 subject to American Stock Exchange approval. Proceeds are for Canadian exploration expenses; more shares at the same US$3.50 price below May's US$4.20 add to dilution.
What it means for a shareholder
3.3m new shares at C$3.67 to raise about C$17.6m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
On September 22, 2008 the company announced a non-brokered flow-through placement of 5,142,857 shares at $3.50 (about $18.0 million) to funds managed by or affiliated with UTA Asset Management, with up to 1,500,000 more (up to $5.25 million) for affiliates and employees. Closing is expected around September 26, 2008, subject to American Stock Exchange approval. The price is below the $4.20 paid in May 2008. Proceeds are to fund Canadian exploration expenses.
What it means for a shareholder
5.1m new shares at $3.50 to raise about $18.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
