RE:NEWS - more dillution ?????simcpoirier wrote: Can someone interpret the release for me ? Just the fact the announcement was made friday after close. Can't be good. Sounds bad.
Go ORTUrd Go!!!!
This is no a big change to what we already knew.
As part of previous press releases ORT communicated that the company was raising money using Euro Pacific (EP) as the sole underwritter. The following is an extract of the related press releases:
Jan 28 2016, ORT announces that EP agreed to buy on a bought deal basis 4,000 units of the company at a price of $1,000 per unit for gross proceeds of $4mln
ORT also signed agreements with suppliers who have to receive an aggregate of 2,938 units as consideration for outstanding invoices in the aggregate amount of $2.9mln.
ORT granted the underwriter an option, exercisable in whole or in part, at one or more additional closings, at any time within 30 days of the closing of the bought offering, to purchase up to an additional 6,000 units for additional gross proceeds of up to $6mln, resulting in aggregate gross proceeds of $12.9mln.
All together EP agreed to sell 4000 units (raise 4 million) and also had the option to sell another 6000 units (another 6 million)
Feb 3, 2016: ORT already received the initial 4 million + the 2.9 million from suppliers + $1,544,000 from the 6miilon option that EP had... all together ORT received $8,482,000 and EP had still the option of selling 4,456 units, or $4,456,000 based on the agreement from Jan 28.
Feb. 23, 2016 Further to ORT’s press release of February 3, 2016 ..., Euro Pacific has exercised a portion of its underwriter's option to purchase an additional 1,060 units for gross proceeds of $1,060,000, which units were issued today. The underwriter has until March 4, 2016 to exercise the balance of its underwriter's option.
at this point EP still has 3,396 units from the Jan 28 release
and today announcement:
March 4, 2016 Further to ORT’s press releases of February 3 and February 23, 2016, ORT increased the number of units that EP can sell by another 1,762 units bringing the tatal to 7,762 units if you consider the original 6000.
Also the closing date was changed from March 4 (today) to April 15
These units and the related warrants can be exchanged in the future using an exchange rate of 40 cents which will dilute current shareholders. There are certain clauses limiting the exchange rate but I do not think that this will help much. This news was the cause of the big drop we had in share price from 40 cents to 30 cents.