Sunday, June 01, 2008 12:36:46 PM
Management’s Plan
We require additional funding within the next six months to continue with our Georgian operations as planned. We are in the process of addressing this by exploring available financing alternatives sufficient to cover at least our short-term working capital needs. On April 23, 2008, we announced that our Board of Directors had given approval to conducting a proposed offering to common stockholders (the Rights Offering) of rights to purchase one share of common stock for each share of common stock held of record on a date to be announced later. The proposed subscription price for the Rights Offering will be $0.10 per share. As of April 18, 2008, there were an aggregate of 242,107,390 shares of common stock issued and outstanding. The Rights Offering is contingent, among other things, upon stockholders approving an increase in the number of authorized shares of common stock at the Annual Meeting of Stockholders, currently scheduled for June 26, 2008, securing the consents of the holders of the our outstanding notes, securing a standby underwriting, registration of the Rights Offering under the Securities Act of 1933, as amended (the Securities Act) and complying with all other applicable securities laws and stock exchange rules and regulations. We also announced that we are currently negotiating with one or more prospective investors to underwrite the unsubscribed shares at the subscription price. The Rights Offering, if successful, would provide the capital needed to meet at least our 2008 planned capital expenditures.
We believe that if we are eventually able to successfully complete the Manavi 12 well such that a significant quantity of oil flows are produced, we will be able to raise additional debt and/or equity funds in order to continue operations and to properly develop the Manavi Field, continue our development plans for the Ninotsminda Field, continue appraising the Norio discoveries, and further develop our business in the region.
http://www.sec.gov/Archives/edgar/data/310316/000115697308000532/u55592e10vq.htm
Drink What The Lion Drinks
We require additional funding within the next six months to continue with our Georgian operations as planned. We are in the process of addressing this by exploring available financing alternatives sufficient to cover at least our short-term working capital needs. On April 23, 2008, we announced that our Board of Directors had given approval to conducting a proposed offering to common stockholders (the Rights Offering) of rights to purchase one share of common stock for each share of common stock held of record on a date to be announced later. The proposed subscription price for the Rights Offering will be $0.10 per share. As of April 18, 2008, there were an aggregate of 242,107,390 shares of common stock issued and outstanding. The Rights Offering is contingent, among other things, upon stockholders approving an increase in the number of authorized shares of common stock at the Annual Meeting of Stockholders, currently scheduled for June 26, 2008, securing the consents of the holders of the our outstanding notes, securing a standby underwriting, registration of the Rights Offering under the Securities Act of 1933, as amended (the Securities Act) and complying with all other applicable securities laws and stock exchange rules and regulations. We also announced that we are currently negotiating with one or more prospective investors to underwrite the unsubscribed shares at the subscription price. The Rights Offering, if successful, would provide the capital needed to meet at least our 2008 planned capital expenditures.
We believe that if we are eventually able to successfully complete the Manavi 12 well such that a significant quantity of oil flows are produced, we will be able to raise additional debt and/or equity funds in order to continue operations and to properly develop the Manavi Field, continue our development plans for the Ninotsminda Field, continue appraising the Norio discoveries, and further develop our business in the region.
http://www.sec.gov/Archives/edgar/data/310316/000115697308000532/u55592e10vq.htm
Drink What The Lion Drinks
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