SXS = 543 Million + shares FD Large float.
SXS's CAPITAL STRUCTURE
Source: https://www.solimarenergy.com.au/documents/Solimar_Energy_-_Investor_Presentation_November_2011.pdf
Ordinary Shares: 445.8 million
Options / Warrants: 97.05 million
PLUS recent capital raising (February 13, 2012...details below)
>> Convertible debenture financing = 28,000,000 additional shares when converted
>> Warrants = 14,000,000 additional shares when exercised
Details re: capital raise on February 13, 2012
Note 15. Subsequent events
Capital Raising
On February 13, 2012, Solimar announced that the Offering had closed with Gross Proceeds of
C$2,800,000 from the issue of 56, C$50,000 par value convertible unsecured senior debentures (the
“Debentures”) subject to a coupon interest rate of 10% per annum, payable quarterly in arrears, at the
election of Solimar, in cash or through the issuance of common shares of the Company (“Common Share”) at a price equal to a 10% discount to the volume weighted average trading price of the Common Shares on the TSXV for the 10 trading days immediately preceding the applicable quarterly interest payment date. The Debentures will have a term of 24 months and will be convertible into Common Shares at the holder's option at a conversion price equal to C
.10 per Common Share.
Solimar has the right to accelerate the maturity date of the Debentures to 30 days from the date of notice once the share price of Solimar’s common shares is equal to, or greater than, C
.20 per share on the TSXV or the ASX for 21 consecutive trading days.
Each holder of a Debenture shall receive 250,000 share purchase warrants (the “Warrants”) per Debenture. Each Warrant will entitle the holder to acquire one Common Share at a price of C
.15 for a period of 24 months after the closing date. Solimar will have the right to accelerate the expiry date of the Warrants to 30 days from the date of notice once the share price of Solimar’s common shares is equal to, or greater than, C
.25 per share on the TSXV or the ASX for 21 consecutive trading days.
The Agents will be paid a commission equal to 6% of aggregate gross proceeds raised from the Offering.
The Offering will also include an over-allotment option for the Agents to place up to 20 additional
Debentures under the same terms as the Offering.
Excerpt from SXS's interim financial report for six months ended 31 December 2011
6. Working Capital Requirements and Capital and Leasing Commitments
Solimar’s estimated consolidated working capital deficiency (current assets less current liabilities) as at December 31, 2011 is $1,977,047. Included in this figure is $262,500 associated with the Canaccord Genuity Sponsorship Report in relation to the TSXV Listing which is to be paid through the issue of shares. The Company has seen a net decrease in its cash and cash equivalents of $303,636 over the six month period to 31 December 2011.
The group has drilling costs either due or committed to with the Paloma Deep well of USD$1,221,021,
of which USD$911,824 was recognised in Trade and Other Payables at 31 December 2011.
In order to fund this along with the group’s other obligations and current drilling and exploration
program, and therefore allow the group to develop its exploration and development assets to allow
realisation of those assets through commercial production and/or sale, the group is currently reliant on
the following key factors:
• that the group has the ability, if warranted, to continue to raise additional funds from share
placements; and
• that the group is able to realise value if it deems appropriate through the selective divestiture
of assets or a sell down of its interests in projects.
The directors are confident of securing the above outcomes, if required, over the 15 month forecast
period to March 2013.
As announced on 13 February 2012 the Group has raised net proceeds of CAD$2.3 million (refer
Subsequent Events – Note 15).