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Kadin

05/16/12 9:33 AM

#197043 RE: B402 #197031

'Unaudited' Financial statements and the Company has insufficient working capital, a stockholders’ deficit and recurring net losses.

Comparing the two reports it's obvious...


Annual 10-K
http://ih.advfn.com/p.php?pid=nmona&article=52019236

Liquidity and Capital Resources
We had a cash balance of $6,309 as of the date of this Annual Report. Our principal source of funds has been capital contributions supplied by our parent company.


Cash flow from operating activities
Cash flows used in operating activities were ($106,281) for the year ended December 31, 2011 due to a net loss which was offset by an impairment in mineral rights and properties, as compared to ($736,090) for the year ended December 31, 2010 due to a net losswhich was offset by an impairment of Handcamp estimated value.

Cash flows from financing activities
Cash flows from financing activities were $112,590 for year ended December 31, 2011 and $736,090 for the year ended December 31, 2010, both of which were related to capital contributions from related parties.



Quarterly 10-Q

http://www.sec.gov/Archives/edgar/data/1412126/000139390512000244/bvig_10q.htm


Liquidity and Capital Resources
We had a cash balance of $3,776 as of the date of this quarterly report. These funds were used to pay vendors of our parent company. Our principal source of funds has been capital contributions supplied by our parent company.

Cash flow from operations .
To date, we have generated no cash flow from operations.


Cash flows from shareholders .
Capital contributions provided by our parent company aggregated $900,351 as of March 31, 2012.


They cannot continue to rely on contributions from the parent company as per their filings and the money provided to Kat Exploration has run dry.

Ssso...

8-K ... Ken selling shares...
http://sec.gov/Archives/edgar/data/1412126/000093041311006049/c66922_8k.htm

ITEM 8.01 OTHER EVENTS

Kenneth Stead, the President, Chief Executive Officer and a member of the Board of Directors of Kat Gold Holdings Corp. (the “ Company ”), is the beneficial and record owner of 2,264,000 shares of the Company’s common stock, par value $0.001 per share (the “ Common Stock ”), which 2,264,000 shares of Common Stock equals approximately one point four percent (1.4%) of the Company’s issued and outstanding Common Stock as of September 15, 2011. Mr. Stead, by having the Company file this Current Report on Form 8-K hereby discloses his intention to sell all or a portion of these shares of Common Stock under Rule 144 of the Securities Act of 1933, as amended. Under Rule 144, Mr. Stead may sell such number of shares of Common Stock every ninety (90) days as shall equal one percent (1%) of the 163,644,500 shares of Common Stock issued and outstanding as of September 15, 2011, or 1,636,445 shares of Common Stock. Mr. Stead acquired such 2,264,000 shares of Common Stock on April 28, 2010 for an aggregate purchase price of $305,000.

Mr. Stead presently intends to use the proceeds from the sale of the shares of Common Stock he may sell to (i) fund certain expenses of the Company, including, but not limited to, its field operations, payroll, legal and other professional fees and administrative costs and expenses and/or (ii) for his personal use. No assurance can be given as to (i) when, if ever, Mr. Stead will sell any or all of his shares, (ii) the price he may sell such shares at and/or (iii) how much, if any, of the net proceeds he receives from any such sale will be provided to the Company.


And 'Regulation S'

"Regulation S"...
Companies do not have to register stock they sell outside the United States to foreign or "off-shore" investors.

When a company uses this Rule, it's a legal loophole which inturn causes a flood of unregistered stock into the U.S. and that eventually causes the price to plummet, leaving unsuspecting U.S. investors with enormous losses.


Read the SEC Filings...Thanks B402...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=74812811


ITEM 3.02 UNREGISTERED SALES OF EQUITY SECURITIES

In connection with the Purchase Agreement, described below, the Company will issue to the Sellers one hundred sixty-one million (161,000,000) shares of Common Stock. These securities will be issued in reliance on Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”). The issuance will not involve any general solicitation or advertising by us. The Sellers acknowledged the existence of transfer restrictions applicable to the securities to be sold by us. Certificates representing the securities to be sold contain a legend stating the restrictions on transfer to which such securities are subject. Certain of the securities will also be issued to non-U.S residents and in reliance upon and pursuant to the exemptions from registration provided by Regulation S of the Securities Act.


In connection with the Kenneth Stead Agreement, the Company will issue to Mr. Stead as a sign-on bonus four million five hundred thousand (4,500,000) shares of Common Stock. These securities will be issued solely to a non-U.S resident and in reliance upon and pursuant to the exemptions from registration provided by Regulation S of the Securities Act.

In connection with the Kenneth Stead Employment Agreement, the Company will issue to Mr. Stead one million five hundred thousand (1,500,000) shares of Series A convertible preferred stock upon the closing of the Global Gold transaction. These securities will be issued solely to a non-U.S. resident and in reliance upon and pursuant to the exemptions from registration provided by Regulation S of the Securities Act.

In connection with the Timothy Stead Employment Agreement, described below, the Company will issue to Mr. Stead six hundred twenty thousand (620,000) shares of Series A convertible preferred stock upon the closing of the Global Gold transaction. These securities will be issued solely to a non-U.S. resident and in reliance upon and pursuant to the exemptions from registration provided by Regulation S of the Securities Act.