QIS Update #26 2013 - November 11th 2013
Included in this Update:
- Blackbird Energy completes $3.1 million financing
- Virtutone secures new $7.5 million credit facility
- Virtutone announces $3.95 million in revenues for October
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Ryan Irvine – Editor Keystone Financial Publishing
GreenStar Agricultural (GRE:TSX-V)
Rock Energy (RE:TSX)
VMS Ventures (VMS:TSX-V)
North American Nickel (NAN:TSX-V)
Brent Todd – Canaccord Wealth Management
Diamcor Mining (DMI:TSX-V)
Ryan Glasser – Orefront Communications
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Blackbird Energy Inc. (BBI:TSX-V)
Current Price: $0.10 (coverage commenced Aug 19/11 - $0.18)
BLACKBIRD ENERGY COMPLETES PRIVATE PLACEMENT OF NEARLY $3.1 MILLION
Blackbird Energy Inc. has closed its previously announced private placement for gross proceeds of $3,087,361.
The private placement comprised a unit portion at nine cents per unit and a Canadian exploration expense flow-through share component at 10 cents per flow-through share.
A total of 26,148,463 units and 7.34 million flow-through shares were issued pursuant to the private placement. Each unit consists of one common share and one common share purchase warrant which is exercisable to acquire one additional common share at a price of 15 cents until Nov. 7, 2018. The warrants are subject to an early acceleration provision which provides for the mandatory exercise or expiry of the warrants in the event the company's shares close at 30 cents or higher for at least 10 consecutive trading days. In such event, the warrants will accelerate and expire 30 days after the company has given notice of the acceleration to the warrant holders.
Garth Braun, president and chief executive officer of Blackbird, stated: "We are extremely pleased with the closing and the demand we encountered for this private placement. With this financing behind us, we are in a strong position to proceed with additional exploration work on our properties, and in particular with the drilling of four wells at our Mantario and Bromhead projects."
In connection with the private placement the company paid finders' fees to various arm's-length finders consisting of a cash portion in the amount of $184,102 and 1,970,021 finders' warrants. Each finder's warrant is exercisable at a price of 15 cents until Nov. 7, 2015.
The private placement remains subject to receipt of the TSX Venture Exchange's final acceptance.
In accordance with applicable securities laws, all of the securities issued pursuant to the private placement, including all finders' warrants, are subject to a minimum four-month hold period, expiring on March 8, 2014.
Blackbird today also announced that it has granted 1.2 million incentive stock options to Joshua Mann, the company's vice-president, business development. Such options are exercisable at a price of 11 cents for a period of five years.
QIS Capital: Blackbird Energy now has sufficient capital resources to move forward with its Mantario and Bromhead plays. We are expecting to get results from the first Mantario well in the next few weeks. The company has up to 54 development wells available at Mantario pending successful drilling.
Virtutone Networks Inc. (VFX:TSX-V)
Current Price: $0.29 (coverage commenced Sep. 9/11 - $0.10)
Virtutone Networks has secured a new accounts receivable credit facility in the amount of $7.5-million, with the capacity to grow to $15-million. The new facility is subject to standard due diligence from the lender and approval by the company's board of directors.
"Over the past few months, we have been restricted in our growth due to a lack of working capital," said Jason Allen, chief executive officer of Virtutone. "This new facility will enable the company to accelerate its growth."
Virtutone Networks Inc. generated over $3.95-million in revenue for the month of October, including a then-record day on Oct. 30, 2013, of $213,000 in revenue.
"October was a solid month with good margins for us," said Jason Allen, chief executive officer of Virtutone. "Once our new $7.5-million credit facility, as previously announced Nov. 1, is in place, we expect revenues to climb. We finished October off strong, and have followed that up with a new daily record revenue of $237,000 on Nov. 3."
QIS Capital: Virtutone’s third quarter period ended on October 31st so we will be watching for those number in mid to late December. The company is now showing sustained revenues of $4 million per month ($48 million per year) and is expecting revenues to move significantly higher in Q4. With Virtutone’s recent Board appointments, the new credit facility, and increased revenues, the company appears to be poised for accelerated growth over the next 12 months.
Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 971,278 shares of Blackbird Energy Inc., and 749,500 shares of Virtutone Networks Inc. QIS Capital may have a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2013 QIS Capital Corporation.