Interesting...LPH making sure the news gets out through all sources. Wonder if this is an attempt to run-up the price before they finalize a financing deal (share issuance) for expansion. Either way, I welcome good news.
As to the point raised regarding further offerings earlier. If you read the SEC filings you'll see the number of shares they registered for sale on Jan. 14th. Total number of shares was 12,887,000+. Periodic sales can occur at any time and could be completed soon. We'll know when they put out a release saying they have completed the sale.
I'm also looking for any new deals to be accretive in the first year.
The new contract announcement this morning and affirmation of guidance are a positive. The proble is there is no one on the institutional side with interest in the stock right now. Just us lonely frustrated retail guys.
In the S-3 filed 01/14/2011, note that 12,887,383 shares were registered and the footnote (7) indicates that this "Represents shares of common stock underlying warrants being sold by the Selling Stockholders".
Those shares are the OLD WARRANTS, not new warrants, which will be converted to stock that can be sold whenever any of the listed existing warrant holders decide to pony up the $2.25 per warrant price for conversion.
So those 12,887,383 shares are ALREADY baked into the FULLY DILUTED SHARE COUNT.
Only if LPH decides to issue NEW SHARES will there be further dilution, and that won't happen until they announce a deal for an acquisition. In contrast, the warrant conversions are independent of whatever deals the company may pursue.
Oftentimes, a new acquisition will be announced FIRST, then the issuance of new shares is afterwards. For example, this is exactly what PUDA did. Stock price rocketed when PUDA announced acquisitions of 6 new mines. Then a few days/weeks later, they announced the shelf offering associated with financing the deal.
The S-3 states, "The stockholders listed on page 7 of this prospectus or in an accompanying supplement to this prospectus is offering to sell up to 12,887,383
shares of our common stock.".
The stockholder table contains the header message, "The following table sets forth information with respect to our common stock known to us to be beneficially owned by the selling stockholders as of January 14, 2011. To our knowledge, the selling stockholders have sole voting and investment power over the common stock listed in the table below. Except as otherwise disclosed herein, the selling stockholders, to our knowledge, have not had a material relationship with us during the three years immediately preceding the consummation of the acquisition."
The footnotes to this table show that every single one of the 12,887,383 shares represents currently outstanding warrants as of 01/14/2011, that were originally purchased on October 29, 2009. Comparing this figure to the 10Q for the period ending 12/31/2010, as of 12/31 the number of outstanding warrants was 14,849,201.
Therefore, the number of warrants cashed in during the quarter ending 12/31/2010, which will be reported on 2/15/2011, is 14,849,201 - 12,887,383 = 1,961,818 warrants cashed in. So for the Q the outstanding warrants are going to be 12,887,383. For all you Black Scholes wizards, that's the number to use for number of outstanding warrants for the 10Q about to be released.
The new fair value as of 12/31/2011 will be about $14,253,000.
The old fair value taken from the 09/30/2010 10Q was $12,490,527.
The difference is the increase in fair value, or $1.7M.
That will be a very minor item to subtract off of net income to get GAAP income (less than 1/10 of net quarterly earnings).
I too welcome the news. A negative spin can be put on anything. I am not commenting on what LPH may or may not do in the future regarding financing, I simply appreciate the update regarding the renewed contracts. That is huge!!!
Likewise, when they announced the figures for Oct. and Nov., sure there may be all kinds of reasons behind the announcement, but I think we all appreciated seeing the numbers.
I give them credit for communicating. One of the most frustrating aspects of many companies is their failure to communicate, leaving shareholders sitting in the dark, waiting and waiting to hear anything. (NEP anyone?)
Bang on Clae, bang on. I sent an e-mail to the CFO last fall asking for reasonable and regular communications from the company, and anytime there are developments that directly affect the company's business. He said they were planning to do exactly that. No complaints there! But Pure is correct also - LPH is stuck in a rut, and that annoys all of us for sure....