Brazil Minerals Inc (OTCMKTS:BMIX) reported that it enhanced its capital structure with the removal of a big number of preferred stock from company’s balance sheet.
The highlights
Certain holders of Brazil Minerals’ Series ‘B’ Preferred Stock and one of the holders of Series ‘C’ Preferred Stock entered into noticeably similar deals with the firm. In the deal, these individuals put in cash in lieu for common stock in a private subsidiary of the firm. They also converted the owned Preferred ‘C’ and Preferred ‘B’ into common stock of the firm’s subsidiary unit, thus dowsing their Brazil Minerals’ preferred stock.
The deal didn’t require release of any BMIX stock for the new capital. Nevertheless, the deal improved company’s balance sheet as it removed all of the firm’s Preferred C and a fraction of its Preferred B. This deal, thus, prevented a potentially large dilution to the current common shareholders of company.
In particular, if the deal was not done, these investors into question could have exchanged their preferred shares to over 2 billion shares of Brazil Minerals’ common stock. If the company had 10 billion shares released and outstanding, the percentage ownership of the common stock would stand at almost 19%. In its place, these stockholders received about 16% of the subsidiary unit’s common stock, while the remainder went to BMIX.
The proceeds
Brazil Minerals reported that its subsidiary unit will deploy the proceeds raised from the deal to buy a gold retrieval unit. Only company will run the GRU and it will get almost half of its revenues in form of royalties. Also, it will be entitled to get a monthly service fees amounting to $2,500. As per the latest update from technical team, the currently available material to operate in GRUs is almost 508,110 cubic meters. It clearly indicates that the company has enough material for numerous GRUs in parallel for a longer period.
Lotus Bio-Technology Development Corp (OTCMKTS:LBTD) Signs Deal With Hunan Cangshi Biological Technology Co. Limited
Lotus Bio-Technology Development Corp (OTCMKTS:LBTD) reported that it has finalized a joint development and marketing deal with Hunan Cangshi Biological Technology Co. Limited. This finalized agreement intends to support sales and manage functions synergistically, which in turn will help company to extend its footprint in the industry.
The President, Michael Palethorpe, said that it is a turning point for company. This deal gives a big opportunity to work with a breakthrough firm with a similar objective and aligned values. They intend to advance together expediently in establishing sustainable and natural products. HC is a choice associate with strong operations that will help Lotus to accelerate global sales strategy.
HC is a successful proprietor, developer and manufacturer of sustainable natural products that are made with organic plants. These plants are cultivated under the supervision HC. The firm specializes in the production of organic based, consumer led, environmentally friendly items that boast affordability and quality.
