QIS Update #33 2014 - November 18th 2014
Included in this update:
- Blackbird Energy announced $5 million financing, acquires 10 more Elmworth Montney sections, grants options
- Newlox Gold Ventures raises $401,799
The Small-Cap Conference that was held in Vancouver on November 6, 2014 at the Vancouver Convention Centre was another successful event. There were a total of 6 companies and 2 guest speakers who gave presentations to a great crowd of approximately 120 people. Considering the recent downtrend in the S&P/TSX-V Composite Index, we were pleased with the turnout and we would like to take this opportunity to thank all of the companies, speakers and attendees that came out to support this event. Your continued support allows us to keep organizing and hosting these informative investment conferences.
The Vancouver conference PowerPoint presentations are now available for viewing online at www.smallcapconference.ca/presentations. We are confident that investors will find this information to be very valuable in completing further due diligence on some quality public companies. We encourage investors to view the presentations and to contact the respective companies with any further questions.
Please feel free to email us anytime at email@example.com or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.
Blackbird Energy Inc. (BBI:TSX-V)
Current Price: $0.40 (coverage commenced Aug 19/11 - $0.18)
Blackbird Energy Inc. has announced a non-brokered private placement of 11,111,200 common shares in the capital of the company to be issued on a flow-through basis pursuant to the Income Tax Act (Canada) in respect of Canadian exploration expenses (CEE) at a price of $0.45 per share for gross proceeds of $5,000,040.
The available proceeds from the Private Placement will be used by the company to incur eligible CEE. The completion of the Private Placement is subject to the company receiving all necessary regulatory approvals, including approval from the TSX Venture Exchange. The company may pay finder's fees consisting of cash and/or common shares pursuant to the closing of the Private Placement.
Blackbird Energy Inc. has announced that it has granted an aggregate of 4,050,000 incentive stock options to certain of its directors, officers, employees and consultants pursuant to the terms of the company's stock option plan. Such options are exercisable for five years at the price of $0.405 until November 10, 2019 and are subject to the acceptance of the TSX Venture Exchange.
The options will vest in three equal installments. The first 1/3 shall vest upon grant, the second 1/3 on the first anniversary of the grant of the options, and the final 1/3 on the second anniversary. Any common shares issuable upon exercise will be subject to a four-month hold period expiring on March 10, 2015.
Blackbird Energy Inc. has announced that it has acquired a 100% working interest in 10 additional sections (6,400 net acres) of Montney rights from four separate vendors that are contiguous or within one mile of Blackbird's existing western Elmworth acreage, which represents a 28% increase. With the completion of these multi-transactional series of acquisitions Blackbird now holds 100% working interest in 46 contiguous sections (29,440 acres) and a total of 50 sections of Montney rights at Elmworth.
The sections that have been acquired are on the western border of Blackbird's existing Elmworth block and are within three miles of Blackbird's 6-26-70-07W6 Middle Montney well that was spud on October 20, 2014.
Garth Braun, CEO of Blackbird commented "This significant acquisition in the western portion of our core area of Elmworth continues to demonstrate Blackbird's determination in becoming a significant Montney player in the Elmworth/Gold Creek area. Blackbird continues to focus on addressing infrastructure requirements and establishing an even greater footprint in this liquids-rich corridor".
QIS Capital: Despite the drop in oil prices, Blackbird is aggressively developing its vast Montney landholdings which lie central to many other major producers in the area. The company continues to be successful in picking up additional Montney lands in the proximity of other competitor lands which were purchased for up to $3 million per section. Blackbird should be nearing the completion of its first Montney well with well tests and results expected in the next few weeks.
Newlox Gold Ventures Corp. (LUX:CSE)
Current Price: $0.045 (coverage commenced March 31/14 - $0.05)
Newlox Gold Ventures Corp. has announced that the Board of Directors has approved the terms of a financing according to which the company will issue unsecured convertible/redeemable debentures (Convertible Debentures) for proceeds of $385,000. In addition, the company has raised $16,799.08 in an Equity Placing for total gross proceeds of $401,799.08.
The Convertible Debentures are convertible at the option of the holder or Redeemable at the option of the company into common shares of the company on or prior to the maturity date at a conversion price of $0.10 per common share.
The Convertible Debentures are fully amortized over a term of 24 months with a simple annual interest rate of 10 percent. Quarterly blended interest and principle payments will be made by the company starting 3 months from completion.
The company will issue to the Investors a number of warrants calculated in accordance with the following formula: Principal Loan Amount X 20 = the number of warrants. Each warrant is exercisable into one common share of the company at $0.05 per share during the first year from the date of this Agreement and at $0.15 per share during the second year from the date of this Loan Agreement. All unexercised warrants shall expire within two years from the date of this Loan Agreement.
The Convertible Debentures have been sold pursuant to exemptions from prospectus requirements to purchasers in Canada and will not be listed on the Canadian Securities Exchange (CSE). The common shares issuable upon conversion will be listed on the CSE and will be subject to a hold period as required by securities regulation.
The Equity Placing of 335,982 units consists of one common share and one two year common share purchase warrant entitling the subscriber to purchase up to an additional 335,982 common shares at $0.05 within the first year and $0.15 per share within the second year.
The company intends to deploy the proceeds of the Convertible Debentures and Equity Placing to expand plant capacity at its first processing facility and construct and in-house beneficiation facility to refine concentrates to doré and will also be applied to general corporate and working capital purposes.
Among the participants in the Debenture Financing are leading financial institutions including QIS Capital, Canaccord Genuity, and Quinsam Capital. The Board is pleased to have established further ties with these leading Canadian financial firms and looks forward to building its relationships further.
A fee of 8% was paid on a portion of the Convertible Debentures for a total payment of $10,000.
QIS Capital: Newlox was able to raise enough capital in a very challenging capital market to proceed with the mill expansion in Costa Rica as well as an in-house beneficiation facility to produce easily saleable gold dore. We expect this expansion to be complete in the next two months with cash flow starting in early 2015.
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 164,000 shares, 706,348 warrants, and 350,000 options of Blackbird Energy Inc., and 1,137,000 shares, 1,200,000 warrants, and a $60,000 convertible debenture of Newlox Gold Ventures Corp. 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 - 2014 QIS Capital Corporation.