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$HL FIRST QUARTER 2017 HIGHLIGHTS
Net income applicable to common stockholders of $26.7 million, or $0.07 per basic share.
Adjusted net income applicable to common stockholders of $16.7 million, or $0.04 per basic share.1
Sales of $142.5 million.
Cash provided by operating activities of $38.3 million.
Adjusted EBITDA of $53.9 million and net debt/adjusted EBITDA (last 12 months) of 1.1x.2,3
Free cash flow of $16.6 million.4
Cost of sales and other direct production costs and depreciation, depletion and amortization ("cost of sales") of $107.6 million.
Silver cash cost, after by-product credits, of $0.84 per ounce, the lowest in over five years.5
All in sustaining cost (AISC), after by-product credits, of $7.60 per silver ounce.6
Cash and cash equivalents and short-term investments of $213.3 million.
"We have started 2017 with strong sales, net income and free cash flow, and our silver margins remain among the top in the industry, driving an increase in cash balances and strengthening our balance sheet," said Phillips S. Baker, Jr., President and CEO. "While the increase of cost of sales over last year reflected the higher throughput from the Casa Berardi open pit operations, our cash cost, after by-product credits, declined 73% to $0.84 per silver ounce and our AISC, after by-product credits, declined 24% to $7.60 per silver ounce. For the remainder of 2017, our focus is on growing reserves and resources, investing in new technologies that will increase productivity, mine life and margins, and advancing the underground at San Sebastian as well as optimizing the open pits at Casa Berardi. In addition, we are focused on working to end the strike at Lucky Friday. In the meantime, we are suspending our Lucky Friday and Company-wide estimates for silver production and cost, until it is resolved."
http://ir.hecla-mining.com/file/Index?KeyFile=2000463951
$KLDX News
Development and Drilling Updates at Hollister; Intercepts 12.96 AuEq opt over 1.4 Feet
Marketwired MarketwiredMay 3, 2017
Klondex Announces Project Development and Drilling Updates at Hollister; Intercepts 12.96 AuEq opt over 1.4 Feet
RENO, NV--(Marketwired - May 03, 2017) - Klondex Mines Ltd. (KDX.TO) (NYSE MKT: KLDX) ("Klondex" or the "Company") is pleased to provide an update on project development activities and underground drilling at its Hollister Mine ("Hollister") located in northern Nevada, USA. These drill results will be included in the Company's initial mineral resource estimate scheduled to be released in the second quarter.
Project Development Highlights:
Rehabbed approximately 4,000 feet of underground workings in the main zone
Replaced approximately 4,000 feet of air and water lines
Repaired the dewatering system, ventilation system, electrical sub-station and underground mobile equipment
Actively developing the Gloria vein system including approximately 1,025 feet and 2,600 feet of waste and ore development, respectively
Initial mineral resource estimate for the Gloria vein system in the second quarter
Gloria Vein System Underground Drilling Highlights: (see TABLE 1 for complete results)
G17-041: 12.96 opt AuEq over 1.4 ft., or 444.3 g/t over 0.4 m
G17-044: 4.18 opt AuEq over 4.0 ft., or 143.3 g/t over 1.2 m
G16-021: 2.57 opt AuEq over 1.6 ft., or 88.1 g/t over 0.5 m
G16-018: 1.35 opt AuEq over 4.3 ft., or 46.3 g/t over 1.3 m
G16-010: 0.75 opt AuEq over 4.2 ft., or 25.7 g/t over 1.3 m
KEY POINTS:
Thirty Nine underground core holes totaling 14,656 ft. (4,467 m) were drilled during this reporting period.
The intent of this drill program was to infill the pre-existing drill holes to increase the drill hole density in the Gloria zone. This will allow the Company to produce an initial mineral resource estimate for the Gloria vein system, which is expected to be released in the second quarter.
Mr. Brian Morris, Senior Vice President, Exploration said, "We are seeing excellent grades and widths in the drill results which are consistent with what was historically mined in the main Hollister Mine." Mr. Morris continued, "Moreover the mineralized vertical extent appears to be similar to the Main Hollister workings."
Assays were performed by American Assay of Sparks, Nevada, as directed under the supervision of Klondex staff. This organization is an ISO 17025 accredited independent laboratory. Underground drill core samples were assayed using a fire assay one-assay ton method with an ICP finish. If initial Au assays were > 5ppm or Ag was > 200ppm the sample is re-assayed with a gravimetric finish. The quality control and assurance program included the insertion of standards and blanks, the retention of pulps and rejects. The core lengths are actual lengths as drilled and were not adjusted for the true width of the mineralized zones.
About Klondex Mines Ltd. (www.klondexmines.com)
Klondex is a well-capitalized, junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. The Company has 100% interests in three producing mineral properties: the Fire Creek Mine and the Midas Mine and ore milling facility, both of which are located in the state of Nevada, USA, and the True North Gold Mine (formerly known as the Rice Lake Mine) and mill in Manitoba, Canada. The Company also has 100% interests in two recently acquired projects, the Hollister mine and the Aurora mine and ore milling facility (formerly known as Esmeralda), also located in Nevada, USA.
Qualified Person
Scientific and technical information in this press release has been reviewed and approved by Brian Morris (AIPG CPG-11786), a "qualified person" within the meaning of NI 43-101.
Cautionary Note Regarding Forward-looking Information
This news release contains certain information that may constitute forward-looking information or forward-looking statements under applicable Canadian and United States securities legislation (collectively, "forward-looking information"), including but not limited to the exploration potential at the Hollister Mine; and the preparation of an initial resource estimate and the timing thereof. This forward-looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially from those contained in such information. These uncertainties and risks include, but are not limited to, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which mineral reserve estimates are reflective of actual mineral reserves; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations; and the ability of Klondex to fund its substantial capital requirements and operations. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure materials filed with the securities regulatory authorities in Canada and United States available at www.sedar.com and www.sec.gov, respectively. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by law.
$DIRV Apex CCTV and Virtual Surveillance Office on Google Maps
https://www.google.com/maps/@33.0921408,-96.6702426,3a,79.1y,239.85h,75.91t/data=!3m8!1e1!3m6!1sMm0nRqemYExVLz-7ezHxQA!2e0!3e11!6s%2F%2Fgeo3.ggpht.com%2Fmaps%2Fphotothumb%2Ffd%2Fv1%3Fbpb%3DChEKD21hcHNfc3YudGFjdGlsZRIgChIJkX7lH04XTIYRHucwvUkC4BMqCg0AAAAAFQAAAAAaBQhkEMsB%26gl%3DUS!7i13312!8i6656!6m1!1e1
$LWLCF 2016 Financial Results Out
https://www.trekmining.com/assets/pdf/Financials/2016-Q4/Financial-Statements.PDF
Puration Bolsters $3 Million Preliminary Forecast Announcing Second Brand Name License Agreement to Produce Cannabis Infused Foods And Beverages
Thu April 27, 2017 8:15 AM|PR Newswire|About: PURA
DALLAS, April 27, 2017 /PRNewswire/ --
Puration, Inc. (PURA) today announced publishing an on-demand shareholder update presentation on the Company's website. The presentation features a new brand name license agreement to produce a second line of cannabis infused foods and beverages in addition the existing EVERx sports and fitness nutritional supplement product line. The presentation also includes an update on the anticipated close in the month of May of a cannabis tourism deal with ML Capital Group (USOTC: MLCG) and Spanish Peaks ScrumpDelicacies to result in a dividend distribution of publicly traded Spanish Peaks ScrumpDelicacies common stock to PURA and MLCG shareholders. The presentation also includes updates on PURA's strategic relationships with North American Cannabis Holdings (USOTC: USMJ) and Alkame Holdings (USOTC: ALKM).
Safe Harbor: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approval for anticipated actions.
Puration Contact:
Brian Shibley, CEO
info@purationinc.com
+1-214-937-9097
SOURCE Puration, Inc.
https://seekingalpha.com/pr/16812858-puration-bolsters-3-million-preliminary-forecast-announcing-second-brand-name-license
$AOIFF Corporate Presentation April 2017
http://www.africaoilcorp.com/i/pdf/2017-04-19-CP.pdf
$MKRS NEWS
Mikros Extends ADSSS Condition-Based Maintenance (CBM) to a Fourth Navy Radar System
Tue April 11, 2017 7:00 AM|PR Newswire|About: MKRS
PRINCETON N.J., April 11, 2017 /PRNewswire/ -- Mikros Systems Corporation (OTCQB: MKRS) announced today that it has received a $1.5 million contract from the U.S. Navy to extend the capabilities of the ADSSS Condition-Based Maintenance (CBM) system to support a fourth Navy radar system, the MK 99.
https://mma.prnewswire.com/media/74425/mikros_systems_corporation_logo.jpg
The Mikros ADSSS system is an advanced network-based remote monitoring and maintenance system which collects performance data in real-time and uses it to detect and predict failures. ADSSS is used on the Navy's Littoral Combat Ship (LCS) to monitor two different radars and other combat system elements. Under this new contract, Mikros' condition based maintenance, or CBM technology, will, for the first time, be used in the Navy's Aegis surface combatant fleet.
"We're excited to take the technology we developed for the LCS fleet and apply it to other combat system elements for Aegis," said Mikros Program Manager Jason Hodge. "The Aegis folks have been using our portable ADEPT system for planned maintenance on the SPY-1 radar over the past few years. This contract will allow us to expand the benefits of predictive maintenance provided by our ADSSS system to the MK 99 radar system aboard the Aegis class."
The program will apply both model-based Prognostics Framework technology to detect and predict failures on each ship, and big data predictive analytics on-shore to analyze data from all ships and detect large-scale trends and patterns.
"This order extends our ADSSS prognostics capabilities to the Aegis ship classes," said Chuck Bristow, Mikros (MKRS) Chief Operating Officer. "It also provides a means to establish common data collection and analysis tools across the fleet. We look forward to expanding ADSSS capabilities to even more ship classes in the future."
Mikros Systems Corporation is an advanced technology company specializing in the research and development of electronic systems technology primarily for military applications. Classified by the U.S. Department of Defense as a small business, its capabilities include technology management, electronic systems engineering and integration, radar systems engineering, command, control, communications, computers and intelligence systems engineering, and communications engineering. Mikros' primary business is to pursue and obtain contracts from the Department of Homeland Security, U.S. Navy, and other governmental authorities. For more information on Mikros, please visit: www.mikrossystems.com.
Important Information about Forward-Looking Statements
All statements in this news release other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company's actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Such factors include, but are not limited to, changes in business conditions, a decline or redirection of the U.S. Defense budget, significant delays or reductions in appropriations for our projects, the termination of any contracts with the U.S. Government, changes in our sales strategy and product development plans, changes in the marketplace, continued services of our executive management team, our limited marketing experience, competition between us and other companies seeking SBIR grants, competitive pricing pressures, market acceptance of our products under development, delays in the development of products, our ability to adequately integrate our new software offerings into our business model, statements of assumption underlying any of the foregoing, and other factors disclosed in our annual report on Form 10-K for the year ended December 31, 2016 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mikros-extends-adsss-condition-based-maintenance-cbm-to-a-fourth-navy-radar-system-300437628.html
SOURCE Mikros Systems Corporation
$MKRS NEWS
Mikros Extends ADSSS Condition-Based Maintenance (CBM) to a Fourth Navy Radar System
Tue April 11, 2017 7:00 AM|PR Newswire|About: MKRS
PRINCETON N.J., April 11, 2017 /PRNewswire/ -- Mikros Systems Corporation (OTCQB: MKRS) announced today that it has received a $1.5 million contract from the U.S. Navy to extend the capabilities of the ADSSS Condition-Based Maintenance (CBM) system to support a fourth Navy radar system, the MK 99.
https://mma.prnewswire.com/media/74425/mikros_systems_corporation_logo.jpg
The Mikros ADSSS system is an advanced network-based remote monitoring and maintenance system which collects performance data in real-time and uses it to detect and predict failures. ADSSS is used on the Navy's Littoral Combat Ship (LCS) to monitor two different radars and other combat system elements. Under this new contract, Mikros' condition based maintenance, or CBM technology, will, for the first time, be used in the Navy's Aegis surface combatant fleet.
"We're excited to take the technology we developed for the LCS fleet and apply it to other combat system elements for Aegis," said Mikros Program Manager Jason Hodge. "The Aegis folks have been using our portable ADEPT system for planned maintenance on the SPY-1 radar over the past few years. This contract will allow us to expand the benefits of predictive maintenance provided by our ADSSS system to the MK 99 radar system aboard the Aegis class."
The program will apply both model-based Prognostics Framework technology to detect and predict failures on each ship, and big data predictive analytics on-shore to analyze data from all ships and detect large-scale trends and patterns.
"This order extends our ADSSS prognostics capabilities to the Aegis ship classes," said Chuck Bristow, Mikros (MKRS) Chief Operating Officer. "It also provides a means to establish common data collection and analysis tools across the fleet. We look forward to expanding ADSSS capabilities to even more ship classes in the future."
Mikros Systems Corporation is an advanced technology company specializing in the research and development of electronic systems technology primarily for military applications. Classified by the U.S. Department of Defense as a small business, its capabilities include technology management, electronic systems engineering and integration, radar systems engineering, command, control, communications, computers and intelligence systems engineering, and communications engineering. Mikros' primary business is to pursue and obtain contracts from the Department of Homeland Security, U.S. Navy, and other governmental authorities. For more information on Mikros, please visit: www.mikrossystems.com.
Important Information about Forward-Looking Statements
All statements in this news release other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company's actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Such factors include, but are not limited to, changes in business conditions, a decline or redirection of the U.S. Defense budget, significant delays or reductions in appropriations for our projects, the termination of any contracts with the U.S. Government, changes in our sales strategy and product development plans, changes in the marketplace, continued services of our executive management team, our limited marketing experience, competition between us and other companies seeking SBIR grants, competitive pricing pressures, market acceptance of our products under development, delays in the development of products, our ability to adequately integrate our new software offerings into our business model, statements of assumption underlying any of the foregoing, and other factors disclosed in our annual report on Form 10-K for the year ended December 31, 2016 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mikros-extends-adsss-condition-based-maintenance-cbm-to-a-fourth-navy-radar-system-300437628.html
SOURCE Mikros Systems Corporation
$HL Analyst Coverage Started
Rodman & Renshaw Initiated its coverage for Hecla Mining Co. (HL)
Hecla Mining Co. (HL) ended the day at $5.4. The Average Volume of the company is 6.4 Million and P/E (price to earnings) ratio is 30.68, while Forward P/E ratio is 29.83.
Rodman & Renshaw Initiated its coverage for Hecla Mining Co. (HL) in a note sent to investors on 6-Sep-16. The research firm Initiated the stock to Buy. Moreover, JP Morgan issued Upgrade rating for the stock on 9-Aug-16. CIBC also Downgrade the company to Sector Perform on 8-Apr-16, 2016. Additionally, Deutsche Bank Downgrade its ratings on the stock to Hold.
The stock has a Return on Assets of 3 percent, Return on Investment of 4.5 percent and a Return on Equity of 4.9 percent. The company’s market cap is $2.14 Billion.
Hecla Mining Co. (HL)’s growth estimate is 50 percent for the current quarter. The growth estimate for the next quarter is -57.1 percent. The company’s stock has climbed 6.36 percent in the past five year. The company is expected to grow by -33.35 percent over the next five years.
Now we look at the Moving Averages, the 200-day is -7.91, the 50-day is -5.13 and the 20-day is 5.19. Moving averages are used as a strong indicator for technical stock analysis and it helps investors in figuring out where the stock has been and also help in determining where it may be possibly heading.
Looking forward, the company is expected to report earnings of $0.03 per share for the current quarter. Revenue is expected in between 182.7 Million and 163.77 Million with an average of 169.16 Million.
Hecla Mining Co. (HL) performance during the last one year Improved 82.83 percent, while its year to date (YTD) performance showed a Positive trend of 3.11 percent. The stock Jumped 4.56 percent over the past six months. The stock’s quarterly performance indicates a Negative momentum of -4.71 percent, whereas its last one month trend is Optimistic with 14.41 percent. Its weekly performance showed an upward trend of 2.08 percent.
Profitability analysis helps a great deal in making investment decision. Net profit margin of the company was recorded at 10.7 percent, operating profit margin was 18.1 percent, whereas gross profit margin stands at 29.6 percent. Beta factor was calculated at 0.45.
Hecla Mining Co. (HL) has 395.44 Million shares outstanding and 389.39 Million shares were floated in market. The short ratio in the company’s stock is documented at 2.5 and the short float is around of 4.12%. The stock’s average true range of stands at 0.18, while the relative strength index is 50.61.
Liquidity ratios helps investors to determine a company’s ability to pay off its debts. For the most recent quarter, quick ratio was 2, current ratio was 2.4, LT Debt/Equity ratio was 0.34 and Total Debt/Equity ratio was 0.35.
Trek Mining’s (TREK) Outperform Rating Reiterated at National Bank Financial
April 5th, 2017 -
By Jessica Moore - 0 comments
Trek Mining logoTrek Mining Inc (TSE:TREK)‘s stock had its “outperform” rating reiterated by National Bank Financial in a research report issued to clients and investors on Wednesday. They presently have a C$2.20 price objective on the stock.
$LWLCF (Trek Mining, Inc) Golden Opportunity?
Sandstorm Gold Announces Completion of Luna Gold/JDL Gold Combination, Files Early Warning Report
NEWS PROVIDED BY
Sandstorm Gold Ltd.
Apr 05, 2017, 17:22 ET
SHARE THIS ARTICLE
VANCOUVER, April 5, 2017 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (NYSE MKT: SAND, TSX: SSL) is pleased to announce that Luna Gold Corp. ("Luna Gold") and JDL Gold Corp. ("JDL Gold") have combined their businesses to create Trek Mining Inc. ("Trek"). As part of the business combination, a non-brokered private placement financing was completed for gross proceeds of C$83,419,172.
Trek is well-funded with approximately C$113 million in cash and no cash debt, and is advancing the Aurizona gold project ("Aurizona" or the "Aurizona Project") to production. A feasibility study is nearing completion and the first gold pour at Aurizona is targeted for year-end 2018. Near-mine and district-scale exploration is also underway with a focus on the drill-ready targets directly along strike of the existing reserves and resources at Aurizona's past producing Piaba open pit. The greenfields exploration ground adjacent to the Aurizona Project is under option to AngloGold Ashanti Holdings plc ("AngloGold").
Sandstorm holds a 3% to 5% sliding scale net smelter returns ("NSR") royalty on Aurizona and at gold prices less than or equal to $1,500 per ounce, the royalty is a 3% NSR. In addition to the sliding scale royalty on Aurizona, Sandstorm holds a 2% NSR royalty on the greenfields property optioned to AngloGold.
EARLY WARNING REPORT
Pursuant to National Instrument 62-103 - The Early Warning System and Related Take Over Bid and Insider Reporting Issues, the Company is announcing the acquisition of an aggregate of 27,660,694 common shares ("Trek Shares") and 11,739,332 warrants (the "Trek Warrants") of Trek. Sandstorm acquired the Trek Shares and Trek Warrants upon the completion of the aforementioned business combination of Luna Gold and JDL Gold, and pursuant to the terms of a debt settlement agreement.
With the acquired Trek Shares and Trek Warrants, Sandstorm now holds an aggregate of 28,035,693 Trek Shares, representing 15.77% of the issued and outstanding Trek Shares. If you assume the exercise in the future of all of the Trek Warrants currently held by the Company into Trek Shares, Sandstorm would then hold 37,095,940 Trek Shares, representing approximately 19.86% of the then issued and outstanding Trek Shares, on a partially diluted basis.
The early warning report, as required under National Instrument 62-103, contains additional information with respect to the foregoing matters and will be filed by the Company on Trek's SEDAR profile at www.sedar.com.
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a gold streaming and royalty company. Sandstorm provides upfront financing to gold mining companies that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of the mine. Sandstorm has acquired a portfolio of 155 streams and royalties, of which 20 of the underlying mines are producing. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold streams and royalties.
For more information visit: www.sandstormgold.com
http://www.prnewswire.com/news-releases/sandstorm-gold-announces-completion-of-luna-goldjdl-gold-combination-files-early-warning-report-618429503.html
http://investorshub.advfn.com/Trek-Mining-Inc-LWLCF-31963/
Sandstorm Gold Announces Completion of Luna Gold/JDL Gold Combination, Files Early Warning Report
NEWS PROVIDED BY
Sandstorm Gold Ltd.
Apr 05, 2017, 17:22 ET
SHARE THIS ARTICLE
VANCOUVER, April 5, 2017 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (NYSE MKT: SAND, TSX: SSL) is pleased to announce that Luna Gold Corp. ("Luna Gold") and JDL Gold Corp. ("JDL Gold") have combined their businesses to create Trek Mining Inc. ("Trek"). As part of the business combination, a non-brokered private placement financing was completed for gross proceeds of C$83,419,172.
Trek is well-funded with approximately C$113 million in cash and no cash debt, and is advancing the Aurizona gold project ("Aurizona" or the "Aurizona Project") to production. A feasibility study is nearing completion and the first gold pour at Aurizona is targeted for year-end 2018. Near-mine and district-scale exploration is also underway with a focus on the drill-ready targets directly along strike of the existing reserves and resources at Aurizona's past producing Piaba open pit. The greenfields exploration ground adjacent to the Aurizona Project is under option to AngloGold Ashanti Holdings plc ("AngloGold").
Sandstorm holds a 3% to 5% sliding scale net smelter returns ("NSR") royalty on Aurizona and at gold prices less than or equal to $1,500 per ounce, the royalty is a 3% NSR. In addition to the sliding scale royalty on Aurizona, Sandstorm holds a 2% NSR royalty on the greenfields property optioned to AngloGold.
EARLY WARNING REPORT
Pursuant to National Instrument 62-103 - The Early Warning System and Related Take Over Bid and Insider Reporting Issues, the Company is announcing the acquisition of an aggregate of 27,660,694 common shares ("Trek Shares") and 11,739,332 warrants (the "Trek Warrants") of Trek. Sandstorm acquired the Trek Shares and Trek Warrants upon the completion of the aforementioned business combination of Luna Gold and JDL Gold, and pursuant to the terms of a debt settlement agreement.
With the acquired Trek Shares and Trek Warrants, Sandstorm now holds an aggregate of 28,035,693 Trek Shares, representing 15.77% of the issued and outstanding Trek Shares. If you assume the exercise in the future of all of the Trek Warrants currently held by the Company into Trek Shares, Sandstorm would then hold 37,095,940 Trek Shares, representing approximately 19.86% of the then issued and outstanding Trek Shares, on a partially diluted basis.
The early warning report, as required under National Instrument 62-103, contains additional information with respect to the foregoing matters and will be filed by the Company on Trek's SEDAR profile at www.sedar.com.
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a gold streaming and royalty company. Sandstorm provides upfront financing to gold mining companies that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of the mine. Sandstorm has acquired a portfolio of 155 streams and royalties, of which 20 of the underlying mines are producing. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold streams and royalties.
For more information visit: www.sandstormgold.com
http://www.prnewswire.com/news-releases/sandstorm-gold-announces-completion-of-luna-goldjdl-gold-combination-files-early-warning-report-618429503.html
Trek is well-funded with approximately C$113 million in cash and no cash debt, and is advancing the Aurizona gold project ("Aurizona" or the "Aurizona Project") to production. A feasibility study is nearing completion and the first gold pour at Aurizona is targeted for year-end 2018. Near-mine and district-scale exploration is also underway with a focus on the drill-ready targets directly along strike of the existing reserves and resources at Aurizona's past producing Piaba open pit. The greenfields exploration ground adjacent to the Aurizona Project is under option to AngloGold Ashanti Holdings plc ("AngloGold").
http://www.prnewswire.com/news-releases/sandstorm-gold-announces-completion-of-luna-goldjdl-gold-combination-files-early-warning-report-618429503.html
Sandstorm Gold Announces Completion of Luna Gold/JDL Gold Combination, Files Early Warning Report
NEWS PROVIDED BY
Sandstorm Gold Ltd.
Apr 05, 2017, 17:22 ET
SHARE THIS ARTICLE
VANCOUVER, April 5, 2017 /PRNewswire/ - Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (NYSE MKT: SAND, TSX: SSL) is pleased to announce that Luna Gold Corp. ("Luna Gold") and JDL Gold Corp. ("JDL Gold") have combined their businesses to create Trek Mining Inc. ("Trek"). As part of the business combination, a non-brokered private placement financing was completed for gross proceeds of C$83,419,172.
Trek is well-funded with approximately C$113 million in cash and no cash debt, and is advancing the Aurizona gold project ("Aurizona" or the "Aurizona Project") to production. A feasibility study is nearing completion and the first gold pour at Aurizona is targeted for year-end 2018. Near-mine and district-scale exploration is also underway with a focus on the drill-ready targets directly along strike of the existing reserves and resources at Aurizona's past producing Piaba open pit. The greenfields exploration ground adjacent to the Aurizona Project is under option to AngloGold Ashanti Holdings plc ("AngloGold").
Sandstorm holds a 3% to 5% sliding scale net smelter returns ("NSR") royalty on Aurizona and at gold prices less than or equal to $1,500 per ounce, the royalty is a 3% NSR. In addition to the sliding scale royalty on Aurizona, Sandstorm holds a 2% NSR royalty on the greenfields property optioned to AngloGold.
EARLY WARNING REPORT
Pursuant to National Instrument 62-103 - The Early Warning System and Related Take Over Bid and Insider Reporting Issues, the Company is announcing the acquisition of an aggregate of 27,660,694 common shares ("Trek Shares") and 11,739,332 warrants (the "Trek Warrants") of Trek. Sandstorm acquired the Trek Shares and Trek Warrants upon the completion of the aforementioned business combination of Luna Gold and JDL Gold, and pursuant to the terms of a debt settlement agreement.
With the acquired Trek Shares and Trek Warrants, Sandstorm now holds an aggregate of 28,035,693 Trek Shares, representing 15.77% of the issued and outstanding Trek Shares. If you assume the exercise in the future of all of the Trek Warrants currently held by the Company into Trek Shares, Sandstorm would then hold 37,095,940 Trek Shares, representing approximately 19.86% of the then issued and outstanding Trek Shares, on a partially diluted basis.
The early warning report, as required under National Instrument 62-103, contains additional information with respect to the foregoing matters and will be filed by the Company on Trek's SEDAR profile at www.sedar.com.
ABOUT SANDSTORM GOLD
Sandstorm Gold Ltd. is a gold streaming and royalty company. Sandstorm provides upfront financing to gold mining companies that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of the mine. Sandstorm has acquired a portfolio of 155 streams and royalties, of which 20 of the underlying mines are producing. Sandstorm plans to grow and diversify its low cost production profile through the acquisition of additional gold streams and royalties.
For more information visit: www.sandstormgold.com
http://www.prnewswire.com/news-releases/sandstorm-gold-announces-completion-of-luna-goldjdl-gold-combination-files-early-warning-report-618429503.html
Mr. Anthony J. Cataldo, also known as Tony, serves as the Chairman and Chief Executive Officer of Oxis Biotech, Inc. Mr. Cataldo has been the Chief Executive Officer OXIS International, Inc. since November 19, 2014 and its Chairman of the Board since July 25, 2014. He served as the Chief Executive Officer of Green St. Energy, Inc. since January 2009. Prior to joining Oxis, he founded Genesis Lion Biotechnologies, Inc. (LBIO) (Formerly Biopharma, Inc.). He served as the Chief Executive Officer of Genesis Biopharma, Inc., from February 7, 2011 to January 14, 2013 and served as its President. He served as the Chief Executive Officer of OXIS International, Inc. from March 2009 to June 2011. He served as an Executive Chairman and Chief Executive Officer of VoIP, Inc. from September 14, 2006 to April 2008. He has experience in helping early-stage companies develop diverse businesses, improving market capitalization, attracting investment capital, restructuring operations and building infrastructures to support future growth. He served in management positions with a number of emerging growth and publicly traded companies. He served as the Chairman, Chief Executive Officer and President of Miracle Entertainment, Inc. since May 2000. From May 1999 to May 2002, he served as an Executive Producer or Producer of several motion pictures at Miracle Entertainment. From August 1996 to December 1998, he served as Chairman and President of Senetek PLC. From 1990 to 1995, he served as the Chairman and Chief Executive Officer of Management Technologies, Inc., and served as its President. He co-founded Hogan Systems and also served as its Executive Vice President. He served as the President of Internet Systems. He served as an Executive Chairman of Lion Biotechnologies, Inc. until March 21, 2012. He has extensive experience in the biotechnology sector having served as the Chairman and/or Chief Executive Officer of several biotech companies including: MultiCell Technologies, Inc., Calypte Biomedical Corporation and Senetek, PLC. He served as an Executive Chairman of Calypte Biomedical Corp. from May 2002 to November 16, 2004. He served in the United States Air Force from 1969 to 1973. He served as the Chief Executive Officer and Chairman of 1st Miracle Entertainment's parent 1st Miracle Group Inc. He served as a Co-Executive Chairman of Matech Corporation since September 2009. He served as the Non-Executive Chairman of BrandPartners Group, Inc. from October 2003 to August 10, 2006, where he has led a turnaround of Multicell Technologies Inc., where he helped recapitalize, eliminating millions of dollars of indebtedness. He served as the Chairman of Green St. Energy, Inc. since November 10, 2008. He served as the Non-Executive Co-Chairman of Multicell Technologies, Inc. from October 2003 to August 1, 2006. He also served as the Chairman of the Board at OXIS International, Inc. from March 26, 2009 to October 2011. He served as the Non-Executive Vice Chairman of Miracle Entertainment Inc. He has been a Director of OXIS International, Inc. since July 31, 2014. He has been a Member of Board of Advisors at Millennium HealthCare, Inc. since June 2015. He has been a Director of Green St. Energy, Inc. since September 6, 2008. He served as a Director of Family Room Entertainment Corp. since January 2008. He served as a Director of VoIP, Inc. and OXIS International, Inc. from March 26, 2009 to October 2011. He served as a Director of Lion Biotechnologies, Inc. from February 2011 to May 22, 2013. He served as a Director of Multicell Technologies, Inc. from February 2005 to August 1, 2006. He served as a Non-Executive Director of BrandPartners Group, Inc. from October 2003 to August 10, 2006. He served as a Director of Calypte Biomedical Corp. from May 2002 to November 16, 2004. He served as a Director of Matech Corporation since September 2009. He served as a Director of Miracle Entertainment.
Luna Gold Shareholders (LGCUF) should receive their shares of Trek Mining (LWLCF) within two weeks per Trek Investor Relations today.
Luna Gold Shareholders (LGCUF) should receive their shares of Trek Mining (LWLCF) within two weeks per Trek Investor Relations today.
$MKRS Mikros Hiring - Accountant Position
Hopefully, they need more help counting all the profits coming soon.
http://www.careerbuilder.com/job/J9039M771X57MCG0RX0?ipath=JRG14&searchid=4d9bb1e5-f452-4a46-b227-818934bbf437&siteid=cbnsv
Trek Mining Announces Conversion of Subscription Receipts into Common Shares and Warrants, Commences Trading on the TSX-V as “TREK”
Trek Mining Inc. (TSX-V: TREK) (“Trek”), formerly JDL Gold Corp. (TSX-V: JDL), is pleased to announce that Luna Gold Corp. (TSX: LGC) and JDL Gold Corp. have combined their businesses to create Trek, following final approval by the TSX Venture Exchange (“TSX-V”) of the previously announced plan of arrangement (the “Arrangement”). Trek is now trading on the TSX-V under the ticker symbol “TREK”.
With the Arrangement closed, 41,709,586 subscription receipts (the “Subscription Receipts”) issued pursuant to Trek’s previously announced brokered and non-brokered private placement financings have been converted into 41,709,586 common shares (each, a “Common Share”) and 41,709,586 common share purchase warrants (each, a “Warrant”). Each Warrant will entitle the holder to acquire one Common Share at an exercise price of C$3.00 with an expiry date of October 6, 2021.
The Common Shares and Warrants issued upon conversion of the Subscription Receipts may be traded by the holders through the facilities of the TSX-V under the symbols “TREK” and “TREK.WT”, respectively, and are not subject to a statutory hold period.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking Statements
This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the words “will”, “may”, “subject to” and similar expressions are intended to identify forward-looking statements. Although Trek believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since Trek can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in Trek's periodic filings with Canadian securities regulators. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Trek does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.
$ACBFF analysis at The Motley Fool today
Who Cares What Jeff Sessions Does? These Marijuana Stocks Should Soar
Aurora Cannabis and Canopy Growth appear poised to climb even higher.
Keith Speights (TMFFishBiz) Apr 2, 2017 at 9:03AM
Will U.S. Attorney General Jeff Sessions crack down on marijuana sales in states that have legalized the drug? Or will he keep the status quo?
These questions have hung like a dark cloud over many marijuana stocks. However, two marijuana stocks won't be impacted by what Sessions does: Aurora Cannabis (NASDAQOTH:ACBFF) and Canopy Growth Corporation (NASDAQOTH:TWMJF). Both stocks are performing well in 2017 so far and appear to be headed much higher.
Marijuana growing in greenhouse
IMAGE SOURCE: GETTY IMAGES.
O Canada!
The Canadian Broadcasting Corporation (CBC) recently reported that the Canadian government will announce regulation in early April that will pave the way for legalization of recreational marijuana by July 2018. Use of medical marijuana is already legal in the country.
According to the CBC report, the Canadian government will license marijuana producers and will ensure that safety regulations are met. Each province, however, will determine how marijuana is distributed and sold as well as setting prices.
Canadian citizens will also be able to grow their own marijuana -- up to a point. The CBC said that the upcoming legislation will limit Canadians to four marijuana plants per household.
Legalization of recreational marijuana was a campaign promise when Canadian Prime Minister Justin Trudeau was running for office. Trudeau had come under criticism in the country for not delivering on his pledge. Police in several Canadian cities have even conducted raids of marijuana dispensaries recently, actions that some Americans fear Sessions might take in the U.S.
Going higher
Aurora Cannabis and Canopy Growth are two of the leading suppliers of medical marijuana in Canada. Both stocks received an immediate boost from the CBC report -- and both have soared over the past 12 months. Aurora's share price is up close to 370% during the period, while Canopy's stock is up nearly 320%.
All of that growth was due to use of medical marijuana. In mid-2014, there were 7,900 medical marijuana patients in Canada. By the end of last year, that number had skyrocketed to 130,000.
With legalization of recreational marijuana likely on the way, the market potential for Aurora Cannabis and Canopy Growth seems ready to take off in a way that makes this growth seem small by comparison. Deloitte Touche Tohmatsu, which provides audit, consulting, tax, and advisory services to companies across the world, estimates that the retail market for marijuana in Canada could be between $4.9 billion and $8.7 billion annually.
Should investors look north?
If you're wanting to invest in marijuana stocks, looking north of the border seems to be a better alternative than buying stocks of companies dependent on the U.S. market -- at least for now. It's possible that Sessions won't target marijuana sales, but there's no guarantee.
Remember, however, that investing in marijuana stocks should be no different than investing in any other kind of stock. Growth is important -- but so is valuation.
Aurora Cannabis lost $8.3 million on $6.95 million in revenue in the second half of 2016. While we can't use earnings-based valuation metrics since Aurora is losing money, the stock currently trades at a stratospheric 95 times sales.
The story is a little better for Canopy Growth. The company reported earnings during the first nine months of last year totaling $4.5 million on revenue of $25.2 million. Canopy's stock currently trades at 60 times sales.
To put those figures into perspective, stocks for most successful companies on the market trade at no more than 10 times sales (with many trading at less than five times sales). Aurora Cannabis and Canopy Growth will need to experience astronomical growth for the stocks to be even close to typical valuations.
Can their growth be that impressive? If the CBC report is right and the Deloitte projections are on target, it's at least in the realm of possibility.
Neither Keith Speights nor The Motley Fool have positions in any stocks mentioned. The Motley Fool has a disclosure policy.
https://www.fool.com/investing/2017/04/02/who-cares-what-jeff-sessions-does-these-marijuan-2.aspx
$LWLCF
Merger Details
Luna Gold and JDL Gold Announce Merger to Create a Multi-Asset Mining Company and Concurrent C$27 Million (US$20 Million) Equity Financing
http://www.marketwired.com/press-release/luna-gold-jdl-gold-announce-merger-create-multi-asset-mining-company-concurrent-c27-tsx-lgc-2192862.htm
New IH board started for Trek Mining
http://investorshub.advfn.com/boards/board.aspx?board_id=31963
$LWLCF
Trek Mining Website
https://www.trekmining.com/
$LWLCF
TREK MINING AT OTCMARKETS
https://www.otcmarkets.com/stock/LWLCF/news
$LGCUF NEWS
March 31, 2017 15:45 ET
Pacific Road Resources Funds Announce Holdings of Trek Mining Following Completion of Business Combination of Luna Gold and JDL Gold
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 31, 2017) - The Pacific Road Resources Funds ("PRRF") announce that, upon completion of the business combination between Luna Gold Corp. and JDL Gold Corp. to form Trek Mining Inc. (the "Corporation"), PRRF has acquired an aggregate of 23,824,969 common shares in the capital of the Corporation (each a "Common Share") and warrants to purchase an additional 23,724,350 Common Shares. PRRF's warrants are comprised of 6,470,000 Class A Warrants to purchase an aggregate of 7,149,350 Common Shares, with each Class A warrant being exercisable at an exercise price of C$1.25, and 15,000,000 Class B Warrants to purchase an aggregate of 16,575,000 Common Shares, with each Class B Warrant being exercisable at an exercise price of C$1.00.
The 23,824,969 Common Shares represent approximately 13.4% of the outstanding Common Shares. Assuming full exercise of PRRF's warrants to purchase 23,724,350 Common Shares, PRRF would hold 47,549,319 Common Shares, representing approximately 23.6% of the then issued and outstanding Common Shares.
PRRF has purchased the securities for investment purposes and may or may not purchase or sell securities of the Corporation, or exercise its warrants to purchase Common Shares, in the future on the open market or in private transactions, depending on market conditions and other factors. PRRF currently has no other plans or intentions that relate to its investment in the Corporation. Depending on market conditions, general economic and industry conditions, the Corporation's business and financial condition and/or other relevant factors, PRRF may develop other plans or intentions in the future.
A copy of the early warning report filed in connection with the investment will be available on the Corporation's profile on SEDAR at www.sedar.com or may be obtained by contacting Greg Dick at +61 2 9241 1000.
About Pacific Road Resources Funds and Pacific Road Capital Management Pty Limited
The Pacific Road Resources Funds are private equity funds investing in the global mining industry. They provide expansion and buyout capital for mining projects, mining related infrastructure and mining services businesses located throughout resource-rich regions of the world. The Pacific Road Resources Funds are managed and advised by Pacific Road Capital Management Pty Ltd ("PRCM"). The PRCM team, located in Sydney, Australia, San Francisco, USA, and Vancouver, Canada, is comprised of experienced mining investment professionals that have extensive knowledge and experience in the mining and infrastructure sectors, including considerable operating, project development, transactional and investment banking experience. For further information on the Pacific Road Resources Funds and PRCM, please go to their website at www.pacroad.com.au.
Anyone know if this is a big deal?
Silver Standard resolves Argentinian export dispute; shares halted
Mar. 31, 2017 2:23 PM ET|About: Silver Standard Resources, Inc (SSRI)|By: Carl Surran, SA News Editor
Silver Standard Resources (SSRI +1.8%) says it will receive ~1B Argentine pesos in a resolution of a dispute with the country's tax authorities over the application of export duties on its Pirquitas mine; shares are halted.
SSRI also says it will exercise its option on the Chinchillas project and form a joint venture with Golden Arrow Resources for development of the property.
SSRI says the resolution provides the certainty required to exercise its option on Chinchillas.
$GLDFF NEWS
Oregon-based Golden Leaf Holdings has struck a deal to acquire the Nevada cultivation and extraction licenses from NevWa, LLC – which operates as Grassroots in the state – for $1.925 million. The move comes just four months before state regulators anticipate the launch of the state’s adult-use market. The license allows the company to sell and distribute products throughout Nevada.
Don Robinson, CEO of Golden Leaf Holdings, said the state is “increasingly being recognized as one of the fastest growing cannabis markets in the U.S.”
“The level of tourism in the state combined with the reciprocity provision in the state’s [medical] cannabis laws, positions Nevada to become one of the largest and most dynamic markets in the country,” he said in a press release. “Cannabis brands that are on store shelves in Nevada can create brand loyalty throughout the North America.”
The deal is the third this month for Golden Leaf, who announced last week they had signed a letter of intent to acquire Oregon’s Chalice, LLC, which won “Cannabis Store of the Year” at the 2017 Dope Magazine Industry Awards. On Mar. 16, the company announced they were set to acquire the assets and business of JuJu Joints, which sells disposable cannabis oil “e-joint” products in Oregon, Nevada, California, Washington state, and Canada. Two days prior, Green Leaf announced plans to acquire Medical Marihuana Group Corporation – a licensed Canadian producer.
All of the deals still await final approval from the appropriate regulators.
$SYTE UPDATE
To the Shareholders of Sitestar:
2016 was a year of transition. We improved the operations, structure, and leadership of the company and now have a much stronger foundation upon which to build.
Sitestar’s book value per share started and ended the year at 4.8 cents for 2016. If we go out a few more decimal points we see that book value declined 0.6% for the year. This is a disappointing result, but not altogether surprising given the expenses associated with addressing past problems. We sacrificed short term results in 2016 in order to have more long term stability.
Book value per share growth is our preferred metric to judge our success or failure. It can be an imprecise measurement at times. However, given the current make-up of our company, it is the best way to compare year over year results. Shareholders should expect our earnings to be lumpy quarter over quarter and year over year. We will, at times, make an allocation that negatively affects our short term earnings or cash flow, but promises long term gains. We judge ourselves over a three to five year period and ask that shareholders do the same.
In 2016 we held the first shareholder meeting the company has ever held. We welcomed a great group of committed shareholders to Charlotte, North Carolina and answered questions for several hours. We will do the same this year. Please mark May 22 on your calendar for Sitestar’s second annual shareholder meeting. We again will be holding the meeting in Charlotte and will address all questions asked. The directors and I look forward to seeing old friends and meeting new shareholders. Please keep an eye out for our proxy statement next month for additional information on the meeting.
We launched two new subsidiaries in 2016: HVAC operations and an asset management subsidiary. We expect both to be significant contributors to our performance going forward. We also strengthened our internet operations and made progress monetizing our real estate holdings.
We began 2016 with net assets of $3.8 million. We were facing high corporate and reporting expenses, some of which are ongoing, and some of which would be specific to 2016. Those corporate expenses ended up totaling $804,712 in 2016. Even if we were able to cut ongoing corporate expenses in half, we would start each year in a 10% hole given the asset base at the time. Not only would our risk be higher, but we also would lose the opportunity to pursue other profitable lines of business.
We were faced with two choices. We could reduce our corporate expenses by deregistering from our SEC reporting obligations and significantly cutting back disclosures, or we could attempt to grow our assets significantly. We decided to recapitalize the company and attempt to grow. On August 10, 2016, November 7, 2016, and February 1, 2017, we raised a total of $10,105,694 and issued 205,326,153 shares at book value. Though our offerings were not fully subscribed, we feel much better about our prospects to continue as a fully reporting company. We finished 2016 with net assets of $9,160,029 and added another $4,625,000 from the February 1, 2017 capital raise. We are now in the process of retiring the rest of our treasury shares and our issued and outstanding shares will soon match.
We are still very small to be a full SEC reporting company, but at least now we are able to look at our growth prospects and see a pathway forward. The capital raised is being contributed to our investment in Alluvial Fund (described later in this letter) and our HVAC operations. We expect to see considerable long term returns from those investments.
Corporate and Board of Directors
The biggest change during 2016 came at the corporate and board levels. We welcomed Chris Payne and Keith Smith to the board. We formed an Audit Committee, a Governance, Compensation, and Nomination Committee, and we appointed Rodney Lake as the board secretary.
We also built much needed infrastructure at the corporate level. We welcomed Alea Kleinhammer in September as our new controller. She has been a tremendous addition and has effectively taken on a wide range of responsibilities. Because Alea’s current responsibilities are more administrative in nature, I have retained the CFO title on a permanent basis.
1
In November we named Rodney Lake as our chief operating officer and corporate secretary. Rodney had been working with us for several months through his consulting firm, The Benval Group. The work done by Rodney and the Benval team has been crucial to our improvement. In his executive role, Rodney will continue to operate on a non-exclusive basis. We hope to work with Benval on additional opportunities in the future.
Internet Operations – Sitestar.net
The evolution of our internet operations is interesting to observe. Revenue has shrunk through the years. Continued customer churn is to be expected. We have spent the year trying to better understand this dynamic and better prepare how to address it.
History over the past decade has shown that this is a declining business. Because of that, it is essential that our expenses be as low as possible and that we convert as many fixed costs to variable. Tabitha Keatts, our president of internet operations, took an axe to expenses in the first half of 2016. After the low hanging fruit was cut off, she has continued her cost cutting efforts with a scalpel. This has meant renegotiating contracts with our service providers and eliminating unnecessary items and costs. Total expenses for the segment declined from $223,669 in the first quarter of 2016 to $145,846 in the fourth quarter. Revenue only declined by $9,080 during that time period. Clearly we ended the year in a much stronger position in this segment than how we entered the year.
Our revenue for the full year 2016 totaled $1,415,289 compared to $1,602,523 for 2015. This was a revenue decline of about 12%. There are bright spots on the revenue side. From the first quarter to the fourth quarter in 2016 the operating revenue decline was only 2.5%. That is a major accomplishment. The percentage decline number will be larger when viewed year over year, but it is clear that we are doing a better job retaining customers than in the past.
We also sold a block of IP addresses during 2016 for approximately $90,000. This sale shows up as other income. If you remove the goodwill write-down from 2015, our comprehensive net income in the segment actually increased by $39,528 in 2016 despite significantly less revenue.
Can this continue in 2017? That is the key question. I will be following the quarter over quarter revenue figures as indicators. A few things make me optimistic. After the new year, we identified two smaller blocks of IP addresses and sold them. Those sales results will show up in the first quarter of 2017. Additionally, we are beginning to strategically sell domains that we own. We actually own 637 domains. We have put 110 of them up for sale. The big one is First.com which, unfortunately, we have not yet sold at the time of this writing. However, we have sold a few others and expect to generate revenue in 2017 from ongoing sales.
On the operational side, we have also raised prices for our services so they are more in line with our competitors. Those price increases will positively affect our revenue and help to offset the decline in the number of customers we serve. We continue to provide value to our customers at a reasonable price point.
Our internet operations have essentially paid for our corporate overhead in the past. Going forward we hope to apply the cash generated in this segment to other profit-making ventures.
HVAC Operations – HVAC Value Fund
Our HVAC companies are all located in Arizona and are subject to extreme seasonality. When the weather is mild, our aim is to break even or lose as little money as possible. When the heat comes, all hands are on deck. Our results in HVAC will not be linear and investors surely will not be able to calendarize any given quarter. Year over year comparisons will also be tough because of one time large scale installations that may skew the results, but that may not be repeatable. We make no attempt to smooth out results and are solely focused on generating as much free cash flow as possible with the least amount of risk over a long term period.
HVAC operations lost $78,843 in 2016. We won’t be reporting adjusted figures as most acquisitive companies do, but investors should be aware that we incurred approximately $80,000 in expenses related to acquisition, start-up and depreciation costs.
I do not believe the results from 2016 for this segment are representative of the performance of HVAC. The start-up costs negatively affected results, we missed high season with two of our larger acquisitions, and the fall temperatures in Arizona were unseasonably mild. We are primed for high season in 2017 and expect a solid year of results.
2
My confidence comes from seeing our results in July and August last year, which did not include our fifth acquisition of the year. The revenue difference from summer to winter is extreme. It is important that we retain the capacity to respond to that demand. We employ the best HVAC technicians in Arizona, and we appreciate the quality work they do for our customers.
We are required to provide pro-forma figures for the private companies HVAC acquired. The key figures there are the revenue numbers. The pro-forma revenue number for the five acquisitions made in 2016 is $3,781,167. We believe we can beat those numbers in 2017 no matter the weather situation. If we do, the bottom line results will follow.
As a note, we closed on an additional acquisition on January 19, 2017 for total consideration of $560,000.
Nathan Reid and Alejandro Garrido have done an excellent job integrating the acquisitions into an effective team. I look forward to reviewing a full year of results.
Real Estate Operations
We made tremendous progress monetizing our real estate portfolio in 2016. In addition to the properties sold, we now receive a steady cash stream from our rental properties. We owe a debt of gratitude to our property manager from JMAX Property Management for the effective management of our rental portfolio.
Unfortunately, the value of the portfolio held for resale has decreased. In addition to our corporate expenses, the biggest driver of Sitestar’s loss in 2016 was a valuation adjustment of $152,411 of our real estate held for resale. Each year we have to determine the fair market value of the properties we own in this category. If the value is below our cost basis, accounting rules require us to write down the value. This creates an expense and reduces the carrying value of these assets.
The good news is that we sold 23 residential properties in 2016 at a slight profit to our carrying value. We also generated rental revenue of $111,987, which provided us with net income of $44,429 after accounting for management expenses and depreciation. We ended the year with eight rental properties and plan on continuing to own this portion of the portfolio.
We were only able to prepare and sell so many properties in one year because of our primary Realtor, Joan Turner, and our construction crew at Southern Trace Builders led by Randy Martin. If you are in the Roanoke, Virginia area, I highly recommend both.
We will continue to attempt to sell the properties and lots that are held for resale to generate cash that we can redistribute to other more profitable areas.
Asset Management – Willow Oak Asset Management
The creation of our Willow Oak Asset Management subsidiary in October 2016 gives us a platform to take advantage of and develop interesting investment opportunities. The Willow Oak name was suggested by our chairman, Jeff Moore, and fits the goal of the subsidiary well. Willow Oak trees are known for being resilient. They also are prolific producers of acorns, which are a food source for numerous animals.
We value strength, endurance, and permanency. We understand that to generate the highest returns for our shareholders over the long term, we must form a structure that benefits the investors in the funds we are partnered with, the portfolio managers of those funds, and Sitestar’s interests.
Our goal is to provide acorns to our partners. For investors in the funds we seed or launch, that means selecting great managers who can provide their investors with strong returns over the long term. For portfolio managers, that means helping them succeed by being a resource to them, helping to solve problems, and findings was to reduce their risk. If the fund investors and portfolio managers prosper, Sitestar and its shareholders will do well.
Since the launch of our Willow Oak subsidiary we have made a seed investment in an outside equity investment partnership and became a foundational partner in a shorter term real estate partnership. As I’ll mention in a few paragraphs, we have also formed a plan to launch an internal investment partnership.
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Alluvial Fund, LP
The impetus for launching Willow Oak was to make a seed investment in Alluvial Fund, LP, a private investment partnership that was launched by David Waters on January 1, 2017. Jeff Moore and I have known Dave for several years and followed him through his investment blog for even longer. Not only is he an intelligent investor with the right temperament to be successful over a long term period, he also fits into what we are trying to create at Sitestar. I am certain that our partnership with Dave will benefit him, his family, and his investors, as well as Sitestar shareholders. We expect direct benefits from our partnership with Alluvial, but we also are certain that each party will benefit in ways currently unforeseen. We are lucky to have him involved with Sitestar.
As part of our agreement with Alluvial, Sitestar paid for the start-up costs of the fund. We are contributing $10 million to the fund over four quarters as a direct investment. We provided the first $2.5 million at launch on January 1, 2017 and will provide $2.5 million on the first day of the next three quarters. Sitestar will make money from the returns on our direct investment and through a fee share.
Any investment should be judged over a long term period, especially so in this case. It is harmful for investors to fixate on monthly, quarterly, or even annual returns. It is even more harmful for a passive investor, as we are in this case, to put pressure on a portfolio manager. We believe Dave is a talented investor and we are confident he will do well over the long term. Because our investment in Alluvial is large relative to Sitestar’s total assets, this investment will have an outsized effect on our results over the next few years. We are willing to bear any short term volatility that may occur because we are confident the rewards will be worth it. We will have patience whether the short term results are positive or negative, and I urge Sitestar shareholders to do the same.
Huckleberry Real Estate Fund II
This investment occurred after the year end 2016, but it is worth noting here. Huckleberry Capital Management is a Registered Investment Advisory firm formed by a group of Motley Fool alums. Alex Pape, Sean Sun, Tom Jacobs, and the rest of their team are top notch people.
Huckleberry manages private accounts and has also put together several off-market opportunities. I first met Alex and Sean five years ago, long before Huckleberry was started. I have enjoyed following their activities ever since. Alex approached me last year to describe Huckleberry’s first real estate fund. Unfortunately, the timing didn’t work out for us to participate. I was happily surprised to get a call from him in January of 2017 with another attractive opportunity.
Sitestar proceeded to provide $750,000 to Huckleberry Real Estate Fund II. The purpose of the fund is to invest in the Oak Street properties real estate development in Lakewood, New Jersey. The investment is expected to last 12-16 months.
We are excited to partner with Huckleberry on this investment and also hope to participate in future opportunities with them.
Internal Sitestar Fund
Over the past year we have internally discussed the idea of launching a private partnership within Sitestar. We are happy to announce that this will become a reality and that Keith Smith will be the portfolio manager.
Keith has built an incredible personal track record investing in equities throughout the world. As Norman Rothery from the Toronto Globe and Mail has said, “His remarkable record is the result of years spent roaming the market’s back alleys for cheap value stocks.” That sums up his approach well and describes why we think the fund will be a success.
We look forward to setting up a structure where Keith can continue his success more formally. We are planning to launch the fund in the third quarter of 2017 and are excited for its prospects.
4
Glancing Back and Looking to the Future
We have one issue from previous management that we are still dealing with. We have an outstanding lawsuit against the former CEO for more than $350,000 in damages. Attempts to settle the lawsuit have been unsuccessful and as of this writing we are preparing for a trial. We will share more information when we are able to.
Putting that behind us, we are working to implement a new culture and attract a confederation of like-minded partners. At Sitestar we do not have and will not create a strategic plan at the corporate level. We do have a philosophy for how we empower our subsidiaries and an investment approach that filters opportunities. Within that framework we strive to remain flexible to adapt to changing realities.
At the corporate level our job is to allocate capital and ensure the subsidiaries are abiding by our audit and reporting requirements. The job of our subsidiaries is to generate cash. It really is as simple as that. Don’t let that simplicity trick you into thinking it is easy. Our operators and partners are faced with a wide range of decisions. They are given the freedom to make mistakes because that freedom also empowers them to do extraordinary things. These partners deserve our praise and appreciation. I hope you’ll pull them aside at our shareholder meeting and thank them for the work they do on behalf of shareholders.
We demand several things from our employees and outside partners. First and foremost, they must do what is right ethically. Great performance will not protect them if they wrongly take advantage of the company or its customers. They should be attracted to accountability since the only way we can improve is by being intellectually honest about results. It is our goal to attract people who are self-motivated; people who like challenges; and people who are lifetime learners. These employees and partners will be rewarded well for doing well for the company.
This is the culture we are implementing at Sitestar. The directors and I are excited to see where it leads in the future, and we are proud to be a part of the journey.
We welcome like-minded shareholders who share our focus on long term value creation. For our current shareholders, thank you for your support. We look forward to seeing you at the shareholder meeting on May 22.
Steven L. Kiel
Chief Executive Officer
March 24, 2017
We are probably looking at something north of 150 million new shares in this offering which will more than double the outstanding shares. Let's hope we see some quick improvement in the sales figures as a result.
If this is true, we're (MJ investors) all going to be fabulously rich.
A Quarter of American Beer Drinkers Say They’re Switching to Pot
http://time.com/money/4705155/beer-marijuana-pot/
If this is true, we're (MJ investors) all going to be fabulously rich.
A Quarter of American Beer Drinkers Say They’re Switching to Pot
http://time.com/money/4705155/beer-marijuana-pot/
The rhetoric coming from Jeff Sessions may be a ploy to create a bargaining chip aimed at the states most involved in pro-marijuana activities, which are largely Democrat. President Trump is obviously more focused on illegal immigration and healthcare reform, and he needs something to "compromise" on to bring the opposition to the table. It's hard to believe he would allow his AG to go rogue on an issue which is now supported by a significant majority of the public. I think we'll see a "deal" on marijuana at some point which will cede all practical control to the states.
$GLDFF News
Golden Leaf Signs Binding Letter of Intent for Acquisition
of Leading Vape Company – JuJu Joints
TORONTO, ONTARIO--(Marketwired – March 16, 2017) – Golden Leaf Holdings Ltd. ("GLH" or the "Company") (CSE:GLH) (OTCQB:GLDFF), a leading cannabis oil solutions company built around recognized brands, is pleased to announce that the Company has signed a binding Letter of Intent (LOI) to acquire the assets and business of JuJu Joints (http://www.jujujoints.com/home) (the “Transaction”).
JuJu Joints is a leading disposable cannabis oil vape e-joint product that utilizes proprietary vape technology and has established strong brand equity and market penetration in Washington state, Oregon, Nevada, California and Canada.
Don Robinson, CEO of Golden Leaf Holdings, commented, “The JuJu Joint brand complements and expands the GLH brand portfolio and provides GLH with expanded access to distribution and markets in Nevada, California and Canada. The legal cannabis market is a target rich environment for a company like Golden Leaf that has a management team and board of directors with years of experience building businesses organically and through acquisition. While we will be deliberate in pursuing strategic acquisition opportunities, we do believe that such a strategy is in the best interests of Golden Leaf and our shareholders.”
Pursuant to the Transaction, JJ 206, LLC (“JuJu Co”) will receive cash consideration of US$2.25 million and, subject to adjustment in certain circumstances, an aggregate of US$2.25 million of common shares of GLH on the closing date of the Transaction.
The Transaction is subject to certain conditions, including CSE and regulatory approval.
Golden Leaf’s Competitive Strategy
The attached chart illustrates Golden Leaf’s strategy to build a market leader in branded cannabis products that is backed by real science and a commitment to lowest cost manufacturing.
Golden Leaf Signs Binding Letter of Intent for Acquisition
of Leading Vape Company – JuJu Joints
TORONTO, ONTARIO--(Marketwired – March 16, 2017) – Golden Leaf Holdings Ltd. ("GLH" or the "Company") (CSE:GLH) (OTCQB:GLDFF), a leading cannabis oil solutions company built around recognized brands, is pleased to announce that the Company has signed a binding Letter of Intent (LOI) to acquire the assets and business of JuJu Joints (http://www.jujujoints.com/home) (the “Transaction”).
JuJu Joints is a leading disposable cannabis oil vape e-joint product that utilizes proprietary vape technology and has established strong brand equity and market penetration in Washington state, Oregon, Nevada, California and Canada.
Don Robinson, CEO of Golden Leaf Holdings, commented, “The JuJu Joint brand complements and expands the GLH brand portfolio and provides GLH with expanded access to distribution and markets in Nevada, California and Canada. The legal cannabis market is a target rich environment for a company like Golden Leaf that has a management team and board of directors with years of experience building businesses organically and through acquisition. While we will be deliberate in pursuing strategic acquisition opportunities, we do believe that such a strategy is in the best interests of Golden Leaf and our shareholders.”
Pursuant to the Transaction, JJ 206, LLC (“JuJu Co”) will receive cash consideration of US$2.25 million and, subject to adjustment in certain circumstances, an aggregate of US$2.25 million of common shares of GLH on the closing date of the Transaction.
The Transaction is subject to certain conditions, including CSE and regulatory approval.
Golden Leaf’s Competitive Strategy
The attached chart illustrates Golden Leaf’s strategy to build a market leader in branded cannabis products that is backed by real science and a commitment to lowest cost manufacturing.
The damage was done weeks ago when the union threatened to strike, but it just presents a buying opportunity in the long run, IMHO.
USW Local 5114 votes to strike.
USW Local 5114 vote today.
https://www.facebook.com/USW-Local-5114-694692010581206/?hc_ref=NEWSFEED&fref=nf
$MKRS NEWS
Mikros Contracted for U.S. Navy Radar Support Systems
Fri, 03/10/2017 - 9:42am
by Ryan Maass, United Press International
The U.S. Navy awarded Mikros Systems Corporation with an $11.5 million contract to perform engineering and technical support services for radar support systems.
The three-year agreement includes engineering, product support and upgrades for Adaptive Diagnostic Electronic Portable Test sets, which are used to operate and maintain advanced radars such as the AN/SPY-1 phased array integrated with Aegis combat systems.
"This order enables Mikros Systems to continue delivering advanced capabilities to the warfighter," Mikros COO Chuck Bristow said in a press release. "It will also provide a pathway to increased ADEPT adoption into additional combat systems and ship classes. We look forward to continuing to work with our Navy customer to improve and expand the capabilities of our ADEPT system."
Adaptive Diagnostic Electronic Portable Test sets, or ADEPT, are maintenance tools used to perform alignment, calibration and error diagnostics for advanced electronic systems.
According to Mikros, the product eliminates the need for traditional manuals and test equipment by storing all necessary information.