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NEWS 8-K Released this morning. Company has filed to raise $35 Million via 11% Senior Debentures Convertable Notes.
https://ih.advfn.com/stock-market/NASDAQ/american-resources-corp-AREC/stock-news/80063938/amended-current-report-filing-8-k-a
The Notes will sell for $10 a piece will convert at $6.00 per share which has a warrant for another share at $10.00 per share good for 3 years.
The 8-K has an attachment that is a MUST SEE. I'll link it to the next post.
https://www.sec.gov/Archives/edgar/data/1590715/000165495419006899/arec_ex991.htm
UPDATED CORPORATE PRESENTATION!!
From Fortem Resources website.
http://www.fortemresources.com/wp-content/uploads/2019/05/Fortem-Corporate-Presentation-v8-05142019.pdf
Impressive!
Since Fortem Resources trades on the TSX they are obliged to follow the TSX rules for promotions and disclosures. The news release is what full disclosure looks like. As I mentioned to a friend when I forwarded this news release, I assume that with this release puts their TSX ducks in a row. :)
One of the requirements that's clear is that before promotional companies are hired, they need the approval of the TSX. I believe this is why they had to "retract" the promotional article by Oilprice.com. With this release Oilprice.com a division of Advanced Media Solutions Limited, is announced as our Investor Relations Company for the next 12 months.
I'm fairly confident a similar but modified version of this same article will be published and promoted by the company. As someone linked below... there's a lot of great information available in the piece... not much new to us who've been following the company, but it's a story that needs a wider audience.
https://finanz.dk/this-25-billion-discovery-could-trigger-a-new-oil-boom/
What else?
1. The Company listed three companies that it had previously hired for investor relations. Winning Media LLC, Nevada Radio LLC, and
Paradox Public Relations... and is still using Nevada Radio LLC.
2. The Company announced what I believe are two stock issuances... one private placement and another for a Membership Purchase Agreement.
3. The Company announced the extension of its agreement for the Godin Oil properties in North Central Alberta.
"Further to its news releases dated October 1, 2018 and December 19, 2018, the Company announces that the proposed closing date of the asset purchase agreement dated September 26, 2018 with a major Canadian oil and gas company to purchase a 100% working interest in three oil leases covering a total of 20,719 hectares (51,200 acres) of heavy oil in north central Alberta has been extended by the parties to a date on or before June 15, 2019. The extension was granted in consideration for the payment of CDN$100,000 to the vendor which will be credited towards the purchase price."
As this property is believed to be the main engine for Fortem Resources future growth... and on paper it had previously expired. So I was very glad to read that this agreement had been extended.
AND IF I MIGHT BE SO BOLD, I think this agreement indicates the time-frame the company is working with. It may well indicate the proximity of the funding that it believes will allow it to move forward with its 2019 Q3 drilling plan. It believes it will be able to close the acquisition of these properties by June 15, 2019. In order to do this... it will need to receive a substantial amount of funding within the next 2-3 weeks.
(About this see the 5-20-2019 release: Fortem Resources prepares to commence field operations at its Godin Property in North Central Alberta, Canada https://www.otcmarkets.com/stock/FTMR/news/story?e&id=1361057 )
Guess time will tell!!
NEWS RELEASE 5-30-2019 Fortem Resources Inc. Announces Investor Relations Agreement with Oilprice.com And, Comments on Recent Promotional Activity and Provides General Corporate Update
Vancouver, British Columbia--(Newsfile Corp. - May 30, 2019) - Fortem Resources Inc. (TSXV: FTM) (OTCQB: FTMR) (the "Company") announces that it has retained Oilprice.com ("Oilprice"), a division of Advanced Media Solutions Limited, for investor relations services to write articles for the Company and drive traffic to the articles through social media.
https://www.otcmarkets.com/stock/FTMR/news/story?e&id=1368368
The investor relations agreement with Oilprice (the "Oilprice Agreement") is for a term of one year. Oilprice will be paid a sum of US$220,000 over the 12 month term, with US$55,000 payable on or prior to June 14th and US$15,000 every month thereafter for the next 11 months. The Oilprice Agreement and the consideration payable thereunder are subject to approval by the TSX Venture Exchange (the "TSXV"). No funds have been advanced to Oilprice by or on behalf of the Company to date, but on May 24, 2019, the Company became aware that Oilprice released a promotional article to the public regarding the Company dated May 20, 2019 (the "Article") prior to pre-approval by the Company and prior to receipt of TSXV approval of the Oilprice Agreement.
Since the release of the Article on May 20, 2019, the closing price of the Company's stock on the OTCQB has decreased although there is a moderate increase in trading volume and the closing price on the TSXV has increased from approximately $1.50 on May 20, 2019 to the $2.48 range currently on very limited volume which price was consistent earlier in the month of May. Management does not know whether the promotional effects of the Article caused any price or volume increases.
The Company retracts the Article and advises that the Article and all statements made therein cannot be relied upon. The Company looks forward to working with and finalizing an authorized article with Oilprice following receipt of TSXV approval.
Oilprice has a popular website for news, information, advertising and opinion. Oilprice employs and contracts with writers who write articles on client companies, most of which are publicly listed for trading on a stock exchange or quotation system.
To the Company's knowledge, and after due inquiry of management of the Company, no directors, officers, control persons have sold or purchased the Company's securities in the past 90 days.
The following is a complete list of third-party service providers that were engaged by the Company to provide investor relations services, public relations services, marketing, or other related services including the promotion of the Company and its securities in the last 12 months:
Winning Media LLC which provided advertising services to the Company as announced in a news release dated September 20, 2018. The agreement with Winning Media LLC has since been terminated;
Nevada Radio LLC which provided broadcasting advertising services to the Company as announced in a news release dated February 5, 2019. The Company continues to utilize the services of Nevada Radio LLC; and
Paradox Public Relations as announced in a news release dated March 14, 2019 which was terminated recently and disclosed as such herein.
During the last 12 months, the Company has issued the following securities at a price that constituted a discount to market at the time of issuance, and in each case in compliance with the discount policies of the TSXV:
On July 18, 2018 and as disclosed in a news release, the Company issued 600,000 common shares at a price of US$2.00 per share in connection with a private placement when the closing price as reported on the TSXV as US$1.88 per common share (based on an exchange rate of $0.7573CDN).
On October 16, 2018 and as disclosed in a news release, the Company issued 1,000,000 common shares to a third party service provider pursuant to a Membership Interest Purchase Agreement at a price of US$2.00 per common share when the closing price as reported on the TSXV was US$1.92 (based on an exchange rate of $0.7729CDN).
Additional Corporate Updates
In other news, the Company announces it has terminated the investor relations agreement with Paradox Public Relations Inc. that was announced in its March 14, 2019 news release.
Further to its news releases dated October 1, 2018 and December 19, 2018, the Company announces that the proposed closing date of the asset purchase agreement dated September 26, 2018 with a major Canadian oil and gas company to purchase a 100% working interest in three oil leases covering a total of 20,719 hectares (51,200 acres) of heavy oil in north central Alberta has been extended by the parties to a date on or before June 15, 2019. The extension was granted in consideration for the payment of CDN$100,000 to the vendor which will be credited towards the purchase price.
About Fortem Resources
Fortem Resources Inc. is a Nevada oil and gas corporation, which holds properties in Alberta and Utah. The Company is engaged in the exploration, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and Utah in the United States. The Company is seeking North American and international expansion through an acquisition strategy.
For further information about the Company, please visit the company website at www.fortemresources.com or email info@fortemresources.com.
On behalf of the Board of Directors,
FORTEM RESOURCES INC.
My assessment of this notification... was also 8-K'd is all good.
In fact, these sellers (both Black Dragon and Rolling Rock) not only extended the terms of their previous agreements with Fortem Resources, Rolling Rock also granted improved FTMR's interest from 50% to 75%, which IF we ever get to well development and production will be a huge benefit to the company.
NEWS RELEASE: 5/28/2019 Fortem Resources Announces Amendments to Utah Property Purchase Agreements to Extend Payment Obligations and Acquire Additional Interest In Mancos Formation
VANCOUVER, May 28, 2019 /PRNewswire/ - Fortem Resources Inc. (TSXV: FTM; OTCQB: FTMR) (the "Company") is pleased to announce that it has entered into two amending agreements which have the effect of postponing certain payments relating to its Utah property interests.
https://mma.prnewswire.com/media/892707/Fortem_Resources_Inc__Fortem_Resources_Announces_Amendments_to_U.jpg
Purchase and Sale Agreement – Black Dragon
On May 16, 2019, but effective as of March 1, 2017, the Company's wholly-owned subsidiary Black Dragon Energy, LLC (the "Black Dragon") entered into a Fourth Amendment to Purchase and Sale Agreement (the "BD Amendment"), which amended the terms of the Purchase and Sale Agreement dated effective March 1, 2017 (the "BD PSA"), between WEM Dragon, LLC (the "WEM") and Black Dragon with respect to the Moenkopi formation and has the effect of:
postponing payment of the remaining US$3.8M owed under the BD PSA relating to certain of its Utah property interests (Moenkopi Formation) until receipt of one or more financings by the Company (or certain of its subsidiaries), in which case the Company must pay 12.5% of the proceeds of each financing close until payment in full;
extending the outside date of full payment of the remaining US$3.8M to May 1, 2020;
extending the "Obligation Deadline" for drilling obligations to May 1, 2020;
requiring the Company to re-enter and perform workover operations reasonably aimed at cleaning out the bore of the Wellington Flats Well and restoring that well to production on or prior to May 1, 2020;
extending the deadline for bond replacement to July 1, 2019; and
in consideration of the various extensions provided for under the BD Amendment, the Company has agreed to issue WEM 300,000 common shares.
In connection with the BD Amendment, the Company entered into a Ratification of Purchase and Sale Agreement with WEM on May 16, 2019 but effective March 1, 2017, whereby the Company ratified, adopted and approved the BD Amendment.
Purchase and Sale Agreement – Rolling Rock
On May 16, 2019, but effective as of March 1, 2017, our wholly-owned subsidiary Rolling Rock Resources, LLC (the "Rolling Rock") entered into a Fifth Amendment to Purchase and Sale Agreement (the "RR Amendment"), which amended the terms of the Purchase and Sale Agreement dated effective March 1, 2017 (the "RR PSA"), between Rockies Standard Oil Company, LLC (the "RSOC") and Rolling Rock with respect to the Mancos formation and has the effect of:
increasing the percentage interest of all right, title and interest in and to the leases to be acquired by Rolling Rock from RSOC under the RR PSA from 50% to 75%;
postponing payment of the remaining US$5.3M owed under the RR PSA relating to certain of its Utah property interests (Mancos Formation) until receipt of one or more financings by the Company (or certain of its subsidiaries), in which case the Company must pay 12.5% of the proceeds of each financing close until payment in full;
extending payment of an additional US$300,000 as the Workover Funds on or before May 1, 2020 (which Workover Funds are separate from and in addition to the cash consideration of US$5.3M);
extending the outside date of full payment of the remaining US$5.3M to May 1, 2020;
extending the "Obligation Deadline" for drilling obligations to May 31, 2020;
extending the deadline for bond replacement to July 1, 2019; and
in consideration of the various extensions provided for under the RR Amendment, the Company has agreed to issue RSOC 300,000 common shares.
In connection with the RR Amendment, the Company entered into a Ratification of Purchase and Sale Agreement with RSOC on May 16, 2019 but effective March 1, 2017, whereby the Company ratified, adopted and approved the RR Amendment.
All common shares of the Company to be issued pursuant to the BD Amendment and the RR Amendment will be subject to a four month and a day Canadian hold period from the date of issuance and subject to the approval of the TSX Venture Exchange.
None of the securities issued have been registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.
About Fortem Resources
Fortem is an oil and gas corporation, which holds properties in Alberta and Utah. The Company is engaged in the exploration, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and Utah in the United States. The Company is seeking North American and International expansion through an acquisition strategy.
On behalf of the Board of Directors,
FORTEM RESOURCES INC.
Excellent video... I liked his closing words.
"We're doing great. We are rapidly growing... and we're going to continue to rapidly grow. We think that in the next five years we're going to be one of the largest players in our space."
Incidentally... there are pictures, videos and updates available on American Resources Facebook pages. Check out their video tab to see key milestones and events.
https://www.facebook.com/americanresourcescorp/
Two of my favorite quotations from the Fox News Interview.
CEO Mark Jensen said:
"The United States produces the highest quality of metallurgical coal in the world, so not only in the United States but all infrastructure growth worldwide comes from our products. And the steel that we produce is of the highest quality because of the coal. We are the essential key component, the key building block, that enables that to happen."
My favorite quotation is of his last words:
"We're doing great. We are rapidly growing... and we're going to continue to rapidly grow. We think that in the next five years we're going to be one of the largest players in our space."
HUGE PIECE OF FREE PROMOTION FROM FOX BUSINESS!!!
Watch this Video!!! CEO Mark Jensen in conversation about the important role metallurgical coal will be having in the building and rebuilding of American and worldwide infrastructure.
https://video.foxbusiness.com/v/6041942246001/#sp=show-clips
Yeah... I think there's always tension between what comes first.
There's nothing in the world I'd like to hear more about Fortem Resources than that they've been funded by $5, $10, or even $30 Million dollars.
However, as whatever financing deal is being put together, I'd rather have the stock price trading at higher levels than it is right now. Does that mean spending money to promote the company and thus the stock price, is a bad thing? Not at all.
Eventually, the proof will be in the pudding. Let's say someone spent 100,000 or maybe 125,000 shares to make this stock promotion take place. At some point, we'll be able to divide the money spent at current levels, and then compare that to the share price and market cap of the company when the financing takes place. If you can add 50 cents or maybe a buck or two to our stock price, we're talking about a corresponding savings of millions of dollars, perhaps even hundreds of millions.
It seems to me, the real question that we as longer-term investors should be focusing on, is whether we believe Bruner and company be able to raise the capital and thus be able to develop these properties... OR NOT?
Depending on how you answer that question... investing accordingly.
I'm still fairly new to QPWR but if memory serves, the last 10K said the company also received (or was going to receive) $700,000 in management contracts in the last part of 1018 and 1st quarter of 2019 from the two acquisitions completed in 2018?
Here's the paragraph from the April 4, 2019 shareholder Update Release:
"Under our long-term management agreement with EPH, we oversee all the operations of GBWA and OBG. In late 2018 and early 2019, we received a total of $700,000 in management fees which will be earned during 2019. We expect these fees to increase as we have more assets under management, but such increase is not guaranteed."
[B]NEWS!!! Q2Earth Signs Services Agreement in Connection with Acquisition of Two Waste-to-Energy Plants in New EnglandPress Release [\B]
https://finance.yahoo.com/news/q2earth-signs-services-agreement-connection-123000010.html
Q2Earth Signs Services Agreement in Connection with Acquisition of Two Waste-to-Energy Plants in New EnglandPress Release | 05/21/2019
Palm Beach, FL, May 21, 2019 (GLOBE NEWSWIRE) -- Q2Earth, Inc. (OTCQB: QPWR) (the “Company” or “Q2”) has signed a services agreement to oversee the operational, legal and financial closing of the acquisition of two waste-to-energy plants in New England on behalf of its client, Community Eco Power LLC (“CEP”), and to assist in post-closing integration matters. The closing between the seller and CEP occurred on May 15, 2019.
For its services to CEP prior to closing and over the following six months, the Company will receive a fee of $250,000. Q2 also received rights to build compost facilities on or around the sites over the next two years subject to permitting and other qualifications, and to invest in future CEP funding rounds.
The facilities purchased by CEP divert approximately 200,000 tons of municipal waste each year from landfills and produce over 9.4MW of electricity and 450 million lbs/year of steam, supporting their communities and local businesses. Using waste feedstock to produce this energy, the two plants offset the combustion of over 43,000 gallons of oil each day and qualify for renewable energy credits.
“We are pleased to assist CEP complete this transaction, and to utilize the experience of Q2’s management in renewables and waste-to-energy operations during the forthcoming transition and integration period,” stated Kevin Bolin, the Company’s CEO. “As we expressed to our shareholders, we believe there are many opportunities like this one to create value from our managerial and sector expertise in a way that furthers our mission of doing good for planet Earth.”
Richard Fish, CEO of CEP, stated: “The Q2 team did an excellent job helping us navigate through the legal, regulatory and financial complexities of this transaction, and we look forward to their continued assistance moving forward.”
From my vantage point... from the Q1 Report below, it doesn't appear that Granite City has turned things around yet.
https://www.gcfb.com/wp-content/uploads/2019/05/OTC-Quarterly-Report-Q1-2019.pdf
Here's a link to the Fiscal 2018 Report (Revenue, balance sheet and cash flow)
https://www.gcfb.com/wp-content/uploads/2019/04/OTC-Annual-Report-2018.pdf
Seems over the last couple months... there has been some growing interest in GCFB stock.
It wasn't that long ago we were trading between 20 and 30 cents per share. Lately, we've seen the stock trading in the 40 to 50 cent range.
As I recall from the last 10-K filing... I'm pretty sure that of the warrants and options that are out there... the lowest exercise price is at 10 cents and the upper range around 50 cents.
$QPWR showed up on a twitter feed this morning. Posted by #StockwatcHQ.
"Beast With Two Backs_Q2EARTH $QPWR CEO To Announce An Open Market Share Buy Back Program To Begin In Late May"
https://twitter.com/i/web/status/1128141512083034112
I have no way to verify that this is so... but recent trading seems to suggest something is coming.
Here's hoping!
I'm also curious for those of you that have been around the company for a while. Does the funding group... and the EHC or whatever it's called, have any precedent or peers of other public companies that have done this?
My guess is that this might be done for accounting reasons... but I am still trying to think it through.
I've been following this company for about a month.
Have there been big bids like we've seen in the last few days....
700K at the Bid... today 500K @ .025 Any thoughts?
Working with the 20% figure... I know it's not a simple one for one comparison... but might we count 20% of the Revenue and Net Income as belonging to QPWR?
Hence, 20% of the projected $14 Million in Revenue... would be $2.8 Million
and 20% of the $1.4 Million EBITDA would be $280K.
Granted dividing this by 51 million shares still comes pretty meager.
Yeah... I need to run...
I think this through a bit further later.
Hey Mazgazine1,
Although there are some who rage against everything SPYR. I'm not an unflinching SPYR fan (see some of my criticisms in my prior posts), but there's something about the company, it's industry and technology, and its business plan, that IF EXECUTED, could grow into become something remarkable and profitable.
It's pretty clear that SPYR has been in a money crunch for quite a while. And regrettably, is probably why the program glitches and patches have been slow in getting fixed.
The company had managed to keep the lights on and stay fully reporting at the QB level, which is important for future venture capital... because it guarantees full disclosure and transparency of all finances, transactions, business dealing.
Check out the yellow "Sticky note." You'll see a list of factors that points to the future potential of the company.
So... what going to happen in SPYR's future? That would be the $100, $1000, or even $10,000 question.
I think it's safe to say that without an infusion of capital SPYR can really only hope eek along as it's been doing.
However, with it, the sky is the limit.
1. Acquisitions (role-up strategy)
2. Program updates
3. Product Relaunches
4. Monetize Game play and markets.
5. ??
6.??
Highlights.
1. "Initial production range is anticipated to be approximately 14,000 to 20,000 clean tons per month with both continuous miners producing."
2. "Phase 3 (Oct - Nov): Production will again be expanded to operate two separate sections: one being a full super section and the other a walking super section, with two production shifts and one maintenance shift. Initial production range is expected to be approximately 32,000 to 42,000 clean tons per month."
3. "Once fully implemented, American Resources expects the Carnegie 1 mine to contribute an estimated $3.45 million in monthly revenue and an annual revenue run rate of approximately $41 million."
4. "'First and foremost, we applaud our team for all of their efforts to complete Phase 1 of our growth plan at our Carnegie 1 mine on time and on budget", stated Mark Jensen, Chief Executive Officer of American Resources Corporation. "This is an important milestone in our overall growth as it enables us to further deliver on our commitment to our customers, employees, and shareholders to being the fastest growing company in our industry."
5. "American Resources Corporation continues to focus on its growth objective by efficiently leveraging its large number of core mining permits and through identifying strategic, supplemental acquisitions and continuing to consolidate quality coal assets for future growth and production. "
NEWS OUT May 2, 2019 American Resources Corporation Restarts Production at Carnegie 1 Metallurgical Coal Mine
https://finance.yahoo.com/news/american-resources-corporation-restarts-production-120000951.html
FISHERS, IN / ACCESSWIRE / May 2, 2019 / American Resources Corporation (NASDAQ: AREC), a supplier of raw materials to the rapidly growing global infrastructure marketplace, with a primary focus on the extraction, processing, transportation and selling of metallurgical coal to the steel industry, announced today that they are restarting production at its Carnegie 1 mine under its previously stated, expanded production plan. The Carnegie 1 mine, an underground mine, located in Pike County, Kentucky and within the Lower Alma coal seam, produces High Vol A/B metallurgical coal.....
Not sure what referring to. Coinbase had a deal where you could watch 5 videos for $2 worth is Stellar Lumens a piece. I did that and received the coins.
Coinbase.com will give you $10 worth of Stellar Lumens (crypto-currency tokens) for watching five 2 minute videos about Stellar Lumens and answering five multiple choice questions. Not sure if you have to set up an account... but it's free if you do. After you get the initial $10, you can get another $40 worth of Stellar Lumens tokens if four of the people you invite watch the videos and takes the quiz.
https://coinbase.com/earn/xlm/invite/z2stdwvp
I assumed you were speaking of Stellar Lumens going live on Coinbase.
If not, what were you referring to... "going live?"
Anyone else notice the funky bid crash yesterday before the close? I tried to figure out what happened and nobody seems to know.
Just tried it... Worked fine.
Increasing price and volume are usually good signs.
For any that missed worship today,.. here was ours.
https://m.facebook.com/story.php?story_fbid=10157843597432908&id=692067907
Increased volume and price this week.
The 500,000 share ARCA sell order overhang hs been gobbled up. Trades took place as high as 14 cents.
I don't know the why or the wherefore, but I like it.
Hopefully, we're approaching the day when the company will finally be able to close on its announced acquisition. Perhaps it will become the company the 10Q's and 10K's indicated that it was hoping to become.
What is it that SPYR needs to move forward? What every start-up company with a viable business plan has ever needed...
SUBSTANTIAL INVESTMENT CAPITAL!!!
Jake and a few others will say I'm foolish and dreaming, and they might be right.
BUT from my perspective... among the most compelling arguments, are the answers to the following questions. WHY? Why bother with all this?
1. Why bother maintaining a QB quality reporting and full OTC grade filings and reports on SEC.GOV?
2. Why file, maintain and amend an S-1A Registration statement?
3. Why develop a world-class blockchain) Bitcoin and Crypto-currency pay system?
4. Why develop marketing relationships with the Star Trek trademark company and Cartoon Network, and spend millions developing a popular video game, Stevens Universe: Tap Together?
5. Why talk about a "Roll+up Strategy" and announce the first (of more-- one would assume) accreditive acquisition... if it wasn't viable and there wasn't the intention to carry through?
6. What does Stephen Crystal, Esq. have to do with anything? This goes back a year, but refers to "a representation and advisory deal" with a video-game mogul. Why? Who does he know and what relationships does he bring to the table?
I guess my overall point, and the reason I've not yet headed for the hills, is because I don't think SPYR is ready to call it quits. If it was going to quit or go bankrupt, it likely would have done so already. But no, those financing the company keep ante-ing up and providing funding for the company.
I'm hoping that one day (hopefully sooner than later) we'll hear that an underwriting or financing agreement had been reached... and they will be able to execute their business plan as never before.
I might be delusional, but what other explanation makes sense?
The only financings we've heard about are maintenance size ones that paid the bills.
The funding we're waiting for is the big numbers that will enable us to prove our assets and develop our properties.
To play on words from The Princess Diary, I don't think you know what those words mean.
I'm just sharing my perspective. Have I read and probably reread every filing and promotional material I can get my hands on? Sure.
I think there have been some unrealistic expectations. Have I believed some of these? I suppose to an extent. Have I projected and conveyed these? I don't think so. I think I've been consistent in conditioning my optimism on the meeting of the company's capital needs.
I have no idea know how the negotiations have actually gone, but here is my guess:
I've mentioned before my understanding of the way venture capitalists and financiers work. They promise the world and get you committed to using them for your financing needs. But then, when it comes to actually deliver funds, then the terms change and availability of capital suddenly dries up and the terms get changed from advantageous to disingenuous.
This is where companies basically "get forced" into accepting debt instruments that result in the issuance of millions and millions of shares. I can't think of the word for this type of financing at the moment... but I'd rather have no financing that that.
I think our management will get this done with terms that will be favorable. At least this is what I'm hoping. Time will tell.
Oh... and incidentally... the linked Company Presentation is pretty explicit:
"Fortem Resources Inc. seeks $34,950,000 for the development of Phases I & II. The later stages in 2019 and onward will be funded by the revenue generated from the four projects along with additional fund-raising."
The old adage is true... it takes money to make money.
I thought today's trading was a little interesting.
https://ih.advfn.com/stock-market/USOTC/spyr-inc-SPYR/trades
All green... and block trades (buys) of 250,000 and 50,000 shares at 7 cents per share. (IHUB trade link only shows the 250,000 trade-- PLUS IHUB only shows 295K volume... whereas Fidelity shows 345K).
For the last couple months, there has been an overhanging offer on ARCA for 450K plus shares... but it was whittled down quite a bit today.
Does it mean anything? Don't know... but it did pique my interest.
Has all this taken longer than expected? Sure. I am probably as impatient as the next guy.
But what to do? Liquidate a position cause it's taking longer than expected? Apparently, some are and have been.
The first shares I bought were on the open market, I believe at 68 cents a piece. I bought and sold some shares since then, but now my average cost is over $2.00 per share.
Early on there were private placement offerings for 50 cents and 70 cents per share... these progressed quickly to $1.50 and $2.00 per share.
Most of the properties we acquired we were brought in at $2.00 per share. Realized, these are folks that are in for the long haul. The only way they will see value and profit realized from their hard assets... properties is if Fortem Resources develops them, and makes them collectively profitable.
What will it take for that to happen... here go again... we need someone(s) somewhere to step up and provide financing for the company. Once this happens, the business plan can happen. Once the business plan happens, the revenues will be generated and eventually profits. When that happens, we will become a buy-out candidate for Junior or Big Oil ... and we as shareholders will realize the gain of the appreciated value of properties.
So far as I know everything is moving forward as ever before. The company and in particular our CEO and Chairman have pretty well dedicated their lives the last couple of years making this company a success.
We heard last December 12 that the company has applied for a listing of their stock NASDAQ Capital Market. As with the TSX listing, there are fairly extensive requirements. I'm fairly confident that as a developmental company, our deficiency is in the area of capital resources.
We need someone to come through and capitalize the company. Without proper financing, we won't be able to uplist to NASDAQ and more importantly, we won't be able to execute our Business Plan.
The company website has moved its Phase 1and Phase 2 business plan to their front page.
http://www.fortemresources.com/
With a Company Presentation of their Business Plan:
http://www.fortemresources.com/wp-content/uploads/2019/03/Feb-2019-Corporate-Presentation-Fortem-Resources_v3.pdf
The company believes that with capitalization (financing) they will be able to generate hundreds of millions (billions cummulatively) of dollars in revenue... the most lucrative is the Godin Formation in Alberta which they project will generate the bulk of their revenue.
Capital Costs Operating Costs Total Revenues EBITDA
GODIN $170,100,000 $1,366,525,000 $1,857,950,000 $491,425,000
COMPEER $9,465,975 $8,087,250 $14,171,925 $6,084,675
MOENKOPI $26,970,000 $25,700,000 $51,900,000 $26,200,000
MANCOS $5,441,500 $6,964,700 $8,660,100 $1,695,400
Total $211,977,475 $1,407,276,950 $1,932,682,025 $525,405,075
It seems clear that AREC's capital resources are being deployed in a highly efficient and productive manner.
This morning's release demonstrates the company's commitment to growing itself into a cost-effective and profitable company.
But refurbishing and deploying these multiple "continuous miners," the company is spending their raised capital in ways that will multiple revenue for months and years to come.
Think about the implications of the numbers released on this morning announcement.
"By mid-summer, with four operating miners on two super sections, Mine #15 is expected to produce 36,000 to 44,000 clean tons per month with an annual run rate revenue at such time of $40 million to $50 million."
When accomplished, this one mine will produce more revenue in the next year than all their money did in 2018.
As these mines are upgraded and brought online, we should be able to piece together the expected run rate and thus annual revenue of all their mine.
As I've posted before, I think we're witnessing the creation of a monster.
All in all, not too exciting. I was hoping that we'd break $40K in revenue in 2018, but apparently, we didn't have the finances to drive those sorts of numbers. Here's my compilation of the numbers.
I'm confident that with the Sales Agreement we signed and the IPO financing of $4,000,000 dollars that we will see things crank up much faster in 2019.
I think I've posted projections for 2019 before.
Quarter(mils)Rev GrossProfit Net (loss) 4 Quarters Rolling
'17 Q3 4,351 1,554 (1,809
'17 Q4 5,486 1,449 (5,356) 9,837 '17 Total $20,820,998
'18 Q1 7,325 1,851 (2,669) 17,162
'18 Q2 7,023 2,403 (1,860) 24,185
'18 Q3 9,038 2,347 (3,628) 28,872
'18 Q4 8,138 6,533 (3,340) 31,525 '18 Total $31,524,825
from SEC.GOV Filings
Own it and watching.
BTW... the resumes of the President and Secretary are not too impressive. :)
But I suppose we'll have to find out what it becomes.