XML 30 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
Shareholders' Equity
 3 Months Ended
Sep. 30, 2016
Equity [Abstract]  
Shareholders' Equity
Shareholders’ Equity
The Company’s authorized capital stock consists of 30,000,000 shares of common stock and 15,000,000 shares of preferred stock. As of September 30, 2016, we had 4,073,403 shares of common stock outstanding. The Company also had an additional 147,331 shares of unvested restricted stock and options and warrants to purchase 1,524,749 shares of common stock outstanding as of September 30, 2016. No shares of preferred stock have been issued. The remaining restricted stock outstanding will vest between December 2016 and January 2019.
In September 2016, the Company distributed a Private Placement Memorandum to its warrant holders to give them the opportunity to exercise their warrants at a reduced exercise price and receive shares of common stock, par value $0.01 per share of Contango ORE, Inc. by paying the reduced exercise price in cash and surrendering the original warrants.  The offering applies to warrant holders with an exercise price of $10.00 per share originally issued in March 2013. The offering gives the warrant holders the opportunity to exercise the warrants for $9.00 per share. The offer will expire on November 15, 2016. See Note 13 - Subsequent Events. Proceeds from the exercise of the warrants will be used for working capital purposes and for funding future obligations to the Joint Venture Company.
Rights Plan
On December 19, 2012, the Company adopted a Rights Plan which was amended on March 21, 2013, September 29, 2014, December 18, 2014, and on November 11, 2015. Under the terms of the amended Rights Plan, each right (a "Right") will entitle the holder to purchase 1/100 of a share of Series A Junior Preferred Stock of the Company (the “Preferred Stock”) at an exercise price of $80 per share. The Rights will be exercisable and will trade separately from the shares of common stock only if a person or group, other than the Estate of Mr. Kenneth R. Peak and its affiliates, acquires beneficial ownership of 23% or more of the Company's common stock.

Under the terms of the Rights Plan, Rights have been distributed as a dividend at the rate of one Right for each share of common stock that was held as of the close of business on December 20, 2012. Stockholders will not receive certificates for the Rights, but the Rights will become part of each share of common stock. An additional Right will be issued along with each share of common stock that is issued or sold by the Company after December 20, 2012. The Rights are scheduled to expire on December 19, 2018.