Re: heads up - question for Agoracom (recent financing)
in response to
by
One mile of Ocean Front, One Incredible Real Estate Development
Multi-Billion Dollar Agreement Signed With Oman
Message: heads up
Your Vote:
Did you know?
You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)
Stock_Shark1, thanks for the message and questions. Responses as follows:
1] There has been no significant dilution of shares. The SEDA is a financing option that OMAG can use none, part or all of:
The Selling Stockholder owns 244,216 of these shares as of the date hereof and 3,000,000 of these shares may be issued to the Selling Stockholder under the New SEDA (as that term is defined below).
May 2011 Standby Equity Distribution Agreement
On May 4, 2011, the Company entered into a Standby Equity Distribution Agreement (the "May SEDA") with YA Master and on June 21, 2011, the Company and YA Master entered into an agreement amending the May SEDA (the “Amendment Agreement”). The May SEDA and the Amendment Agreement are collectively referred to herein as the “New SEDA”. Pursuant to the New SEDA the Company may, at its sole discretion and upon giving written notice to YA Master (an “Advance Notice”), periodically sell shares of its Common Stock to YA Master. For each share of Common Stock purchased under the New SEDA, YA Master will pay to the Company ninety-five percent (95%) of the lowest daily volume weighted average price of the Common Stock as quoted by Bloomberg, LP, during the five (5) consecutive Trading Days (as such term is defined in the New SEDA) immediately subsequent to the date of the relevant Advance Notice (the “Purchase Price”). The Company is not obligated to sell any shares of Common Stock to YA Master but may, over the term of the New SEDA and in its sole discretion, sell to YA Master that number of shares of Common Stock valued at the Purchase Price from time to time in effect that equals up to ten million dollars ($10,000,000) in the aggregate
2] Given the fiscal / share structure track record of Frank Drohan and the entire company, shareholders can feel comfortable that funds will only be accessed when they would be benefiical to the company.
3] As the Company's IR firm, we are strictly prohibited from input/opinions/personal views on any potential impact of any such event, both positive or negative.
Speaking generally, responsible financing should never be of major concern to shareholders of a growing organization. Growth requires funding.
4] Any dilution at the public company level will not have any impact on Omagine LLC. They are 2 separate entities.
Hope this helps and have a great weekend.
Regards,
George
Loading...
Loading...
New Message
Please
login
to post a reply