F-20..found pg F73 interesting, especially last two paragraphs.
NEWLEAD HOLDINGS LTD.
Notes to the Consolidated Financial Statements
(All amounts expressed in thousands of U.S. dollars except share and per share amounts)
27. SUBSEQUENT EVENTS
a) Common Shares, Restricted Common Shares and Warrants
During the period from January 1, 2014 until May 8, 2014, the Company issued an aggregate of approximately 915,290 common shares, to various vendors in order to settle outstanding liabilities totaling approximately $6,760.
On October 1, 2013, the Company authorized the issuance to a third party of a ten-year warrant to purchase 9,800,000 common shares, with an exercise price of $0.005. During the period from January 1, 2014 until May 8, 2014, approximately 5,935,760 of the warrants were exercised and the Company issued approximately an aggregate of 5,902,680 common shares, due to cashless exercise notices.
On January 7, 2014 and March 11, 2014, the Company issued an aggregate of 91,464 common shares to Michail Zolotas in connection with his 2013 annual base salary under the terms of his employment agreement.
During the period from January 1, 2014 until May 8, 2014, the Company issued an aggregate of approximately 16,515,650 common shares, for the repayment of the VAG and VPP senior secured notes.
During the period from January 1, 2014 until May 8, 2014, the Company issued an aggregate of approximately 17,241,380 common shares, for the repayment of the true-up mechanism with respect to Tiger Equity Partners Ltd senior convertible promissory note, dated June 19, 2013.
During the period from January 1, 2014 until May 6, 2014, the Company issued an aggregate of approximately 51,155,990 common shares, in relation to the convertible, redeemable Series A Preference Shares issued to Ironridge Global IV, Ltd. (“Ironridge”) .
From January 1, 2014 to May 5 2014 pursuant to the December Settlement Agreement approved by the December Order (Case No 160776/2013) and since the issuance of the December Initial Settlement Shares, the Company issued and delivered to Hanover Holdings I, LLC (part of Magna Group LLC) 49,400,000 December Additional Settlement Shares.
On March 6, 2014, and after approval of the Company’s board of directors and the majority of its shareholders, a 1-for-10 reverse stock split of its common stock was effectuated. This transaction had as a result the increase of the Company's par value of common shares from $0.01 to $0.10 per share.
b) Lease Agreements
On January 20, 2014, the Company entered into two annual lease agreements with Terra Norma and Terra Stabile, which are controlled by Michail Zolotas, the Company’s Chairman, Chief Executive Officer and member of the Company’s Board of Directors in relation to office parking space for a monthly aggregate rate of approximately €1,500 ($2,100).
Following the above mentioned Terra Stabile S.A. and Terra Norma S.A agreements’ amendments, there is an increase of $22 for year 2014 at the committed rent payments table in Note 23.
c) Compliance and Deficiency Notices from The NASDAQ Stock Market
On January 3, 2014, the Company received a written notification from The NASDAQ Stock Market LLC (“NASDAQ”) indicating that the Company regained compliance with the minimum bid price requirement of $1.00 per share. However due to the compliance issues under NASDAQ Listing Rule 5815(d)(4)(a), the Panel decided to monitor the Company for a six month period ending June 30,2014, to determine whether it experiences a closing bid price under $1.00 for a period of 30 consecutive trading days.
In addition, on December 23, 2013, the Company received notice from the NASDAQ Listing Qualifications Department indicating that the Company did not satisfy the $50,000 in market value of listed securities requirement for continued listing on The NASDAQ Global Select Market (the “Market Cap Requirement”), as set forth in Listing Rule 5450(b)(2)(A), for the prior 30 consecutive business days. In accordance with the NASDAQ Listing Rules, the Company was granted a 180-day grace period, through June 23, 2014, to evidence compliance with the Market Cap Requirement. Compliance with the Market Cap Requirement can be achieved if the Company evidences a market value of listed securities of at least $50,000 for a minimum of 10 consecutive business days, but generally for no more than 20 consecutive business days, during the grace period.
F-73
