NEWL
RISK VS REWARD
1. Newl will not RS on grey do to up listing on QB IMO...
Once the Form 15c-211 is cleared, the Company hopes to have its shares trade on the OTCQB market. The Company has engaged a market maker to file the necessary application with FINRA. The Company intends to make a further announcement regarding its trading market once the application is cleared.
2. 9 million OS
3. QB
4. 1 More vessel should be announced
5. 125mil court suit possible
June 23, 2014, in arbitration proceedings currently pending between the Company and Ironridge Global IV, Ltd. ("Ironridge"
, the Company filed claims against Ironridge for breach of contract, fraudulent inducement of contract and fraud, securities market manipulation and misrepresentation in violation of United States federal securities laws, unjust enrichment, and violation of 15 U.S.C. 78p(b), seeking disgorgement of short-swing profits, damages in excess of $25 million, punitive damages in excess of $100 million, and reimbursement of legal costs and the costs of the arbitration. NewLead has also requested that the arbitration tribunal declare that the agreement between NewLead and Ironridge is terminated and/or void ab initio, and that Ironridge has no entitlement to the issuance of additional common shares of NewLead.
6. BOTTOM IS NEAR
7. ASSETS
Current assets
Cash and cash equivalents $ 2,271 $ 1,043
Restricted cash 8 - 1,311
Trade receivables, net 3,573 3,586
Other receivables 3,224 4,980
Due from related parties 10 5
Due from Joint Ventures 1,679 -
Inventories 288 81
Prepaid expenses 888 646
Deferred charges, net 12 489 573
Total current assets 12,422 12,225
Restricted cash 8 31 31
Investments in Joint Ventures 6 - 1,040
Advances for acquisition of coal property 5 21,855 11,000
Advances for vessel acquisition 10 22,747 -
Vessels and other fixed assets, net 10 35,067 37,503
Property equipement and mine development costs 11 10,051 -
Owned and leased mineral net of accumulated depletion rights, land and building 11 20,977 -
Goodwill 7 28,007 -
Other non-current assets 174 -
Total non-current assets 138,909 49,574
Total assets $ 151,331 $ 61,799
8.
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities
Current portion of long-term debt 16 $ 60,306 $ 78,739
Accounts payable, trade 13 21,451 13,618
Accrued liabilities 14 15,173 10,660
Share settled debt 15 72,595 -
Convertible notes, net 17 101,651 62,552
Promissory notes payable 5 - 11,000
Derivative financial instruments 22 20,491 767
Due to related parties 34 90
Total current liabilities 291,701 177,426
Non-current liabilities
Asset retirement obligations 18 979 -
Total non-current liabilities 979 -
Total liabilities 292,680 177,426
9.
Our current limited coal operations include: (i) the rights to mine at the Viking Mine located in Pike, Floyd, and
Letcher Counties in Kentucky, with approximately 4,795 mineral acres, which rights were acquired in September 2013; (ii) a coal wash plant in located in
Pike County, Kentucky, which was acquired in December 2013; and (iii) three executive employees with extensive mining expertise that manage and supervise
the Company’s mining operations. In addition, in January 2014, we were granted access to develop and mine at the Five Mile Mine located in Breathitt County,
Kentucky, which represents approximately 7,695 mineral acres. We previously entered into an agreement to acquire title to the Five Mile Mine in 2012 which
was under default during 2013, however amounts due under the agreement have been added to the agreement between us and Hanover Holdings I LLC
agreement (“Hanover agreement”) (see also Item 5. Operating and Financial Review and Prospects-Recent Developments-Accounts Payable Settlement
(December 6, 2013), and during January 2014, required payments were made through Hanover agreement, and if the remaining payments are made pursuant
to the Hanover agreement, we anticipate that we will close that acquisition and acquire title to the Five Mile Mine by the end of 2014. We are also currently in
advanced negotiations to acquire approximately 1,900 mineral acres in Cumberland County, Kentucky, which is known as the Marrowbone Mine. The letter
of intent relating to the acquisition of the Marrowbone Mine had an exclusivity period that ran through March 31, 2014, although management continues to
negotiate for the acquisition of the Marrowbone Mine. We have not yet made the necessary payments to acquire title to the Five Mile Mine and have not yet
finalized the negotiations regarding the acquisition of the Marrowbone Mine and, as a result, these transactions have not yet closed. In addition to the properties
that we have acquired in Kentucky, we are in discussions for the acquisition of additional coal properties located in the United States.
Five Mile Mine
In December 2012, we entered into an agreement to purchase (i) the ownership and mineral rights to approximately 7,695 acres of land in Breathitt
County, Kentucky, which is referred to as the Five Mile Mine, and (ii) approximately 18,335 acres in Campbell and Scott Counties in Tennessee, which is
referred to as the Tennessee Property. As discussed more fully below, our agreement to acquire the Tennessee Property has terminated and is of no further force
or effect.
The Five Mile Mine encompasses at least nine seams. The mineable reserves we expect to mine are in the Hazard seven through eleven seams as well as
Skyline seams one through four. These seams are included in the areas between Howards Creek and Middle Fork on the east and west sides of the property
and Howards Creek to Lick Branch on the north and south sides of the property. Historically, these seams contain low to high quality bituminous steam coal
which has been mined from the Pre-Civil War era until the present. Available geological mapping from the United States Geological Survey (U.S.G.S.) shows
the site to be underlain by the Breathitt formation which consists of cyclic sequences of sandstone, shale, coals and fireclays.
The repayment schedule has been recommenced and, as a result, in January 2014, the Company was
granted access to develop and mine at the Five Mile Mine. The Company is continuing to pursue the acquisition of title to the Five Mile Mine and currently
anticipates that it will close that acquisition by the end of 2014.
Marrowbone Mine
We have entered into a letter of intent to acquire all of the issued and outstanding capital stock of a corporation that holds title and mineral evacuation
rights to approximately 1,900 mineral acres in Cumberland County, Kentucky, which is known as Marrowbone Mine. We are currently in advanced
negotiations relating to the acquisition of Marrowbone Mine. The letter of intent relating to the acquisition had an exclusivity period that ran through March 31,
2014, although management continues to negotiate for the acquisition of the marrowbone Mine.
Tennessee Property
We previously entered into an agreement to acquire ownership and leasehold interests, including rights, title, permits and leases to coal mines, to the
Tennessee Property. However, as we were not able to obtain the necessary financing to satisfy its payment obligations under the purchase agreement for the
Tennessee Property, we entered into an agreement, pursuant to which it was to be permitted to use the property through a one-year lease agreement. On June 7,
2013, due to a default under the lease agreement, we assigned all rights under the permits, mining contracts and other mining assets relating to the Tennessee
Property back to the seller. As a result of the default, our agreement to acquire the Tennessee Property terminated and is of no further force or effect. We may be
liable to the seller for damages or any amounts owed under the agreements; however, as of the date hereof, the seller has not initiated any actions against us
based on such defaults.
Rock Formations, Mineralization and Reserves
The properties in Kentucky also include natural gas wells and projects relating to extraction of timber, sand, gravel, fly ash and dimension stone. We
expect third parties to extract some of these commodities on the properties and pay royalties; however, we may decide to extract these commodities itself.
Vessel Name
Vessel Type
Year Built
Size (dwt)
Charter Expiration Date
Dry Bulk Vessels
NewLead Albion
Handysize
2012
32,318
Spot
TBN
Handysize
2013
35,531
NewLead Venetico
Handysize
2012
32,500
Spot
NewLead Victoria
Panamax
2002
75,966
Q2 2018 - Q3 2018
NewLead Markela
Panamax
1990
71,733
Spot
Tanker Vessels
Captain Nikolas I
Small Tanker
2009
5,887
Q2 2015
M/T Sofia
Small Tanker
2008
2,888
Spot
Gema
Oil Tanker
2001
19,831
Spot
RISK VS REWARD
1. Newl will not RS on grey do to up listing on QB IMO...
Once the Form 15c-211 is cleared, the Company hopes to have its shares trade on the OTCQB market. The Company has engaged a market maker to file the necessary application with FINRA. The Company intends to make a further announcement regarding its trading market once the application is cleared.
2. 9 million OS
3. QB
4. 1 More vessel should be announced
5. 125mil court suit possible
June 23, 2014, in arbitration proceedings currently pending between the Company and Ironridge Global IV, Ltd. ("Ironridge"
, the Company filed claims against Ironridge for breach of contract, fraudulent inducement of contract and fraud, securities market manipulation and misrepresentation in violation of United States federal securities laws, unjust enrichment, and violation of 15 U.S.C. 78p(b), seeking disgorgement of short-swing profits, damages in excess of $25 million, punitive damages in excess of $100 million, and reimbursement of legal costs and the costs of the arbitration. NewLead has also requested that the arbitration tribunal declare that the agreement between NewLead and Ironridge is terminated and/or void ab initio, and that Ironridge has no entitlement to the issuance of additional common shares of NewLead. 6. BOTTOM IS NEAR
7. ASSETS
Current assets
Cash and cash equivalents $ 2,271 $ 1,043
Restricted cash 8 - 1,311
Trade receivables, net 3,573 3,586
Other receivables 3,224 4,980
Due from related parties 10 5
Due from Joint Ventures 1,679 -
Inventories 288 81
Prepaid expenses 888 646
Deferred charges, net 12 489 573
Total current assets 12,422 12,225
Restricted cash 8 31 31
Investments in Joint Ventures 6 - 1,040
Advances for acquisition of coal property 5 21,855 11,000
Advances for vessel acquisition 10 22,747 -
Vessels and other fixed assets, net 10 35,067 37,503
Property equipement and mine development costs 11 10,051 -
Owned and leased mineral net of accumulated depletion rights, land and building 11 20,977 -
Goodwill 7 28,007 -
Other non-current assets 174 -
Total non-current assets 138,909 49,574
Total assets $ 151,331 $ 61,799
8.
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities
Current portion of long-term debt 16 $ 60,306 $ 78,739
Accounts payable, trade 13 21,451 13,618
Accrued liabilities 14 15,173 10,660
Share settled debt 15 72,595 -
Convertible notes, net 17 101,651 62,552
Promissory notes payable 5 - 11,000
Derivative financial instruments 22 20,491 767
Due to related parties 34 90
Total current liabilities 291,701 177,426
Non-current liabilities
Asset retirement obligations 18 979 -
Total non-current liabilities 979 -
Total liabilities 292,680 177,426
9.
Our current limited coal operations include: (i) the rights to mine at the Viking Mine located in Pike, Floyd, and
Letcher Counties in Kentucky, with approximately 4,795 mineral acres, which rights were acquired in September 2013; (ii) a coal wash plant in located in
Pike County, Kentucky, which was acquired in December 2013; and (iii) three executive employees with extensive mining expertise that manage and supervise
the Company’s mining operations. In addition, in January 2014, we were granted access to develop and mine at the Five Mile Mine located in Breathitt County,
Kentucky, which represents approximately 7,695 mineral acres. We previously entered into an agreement to acquire title to the Five Mile Mine in 2012 which
was under default during 2013, however amounts due under the agreement have been added to the agreement between us and Hanover Holdings I LLC
agreement (“Hanover agreement”) (see also Item 5. Operating and Financial Review and Prospects-Recent Developments-Accounts Payable Settlement
(December 6, 2013), and during January 2014, required payments were made through Hanover agreement, and if the remaining payments are made pursuant
to the Hanover agreement, we anticipate that we will close that acquisition and acquire title to the Five Mile Mine by the end of 2014. We are also currently in
advanced negotiations to acquire approximately 1,900 mineral acres in Cumberland County, Kentucky, which is known as the Marrowbone Mine. The letter
of intent relating to the acquisition of the Marrowbone Mine had an exclusivity period that ran through March 31, 2014, although management continues to
negotiate for the acquisition of the Marrowbone Mine. We have not yet made the necessary payments to acquire title to the Five Mile Mine and have not yet
finalized the negotiations regarding the acquisition of the Marrowbone Mine and, as a result, these transactions have not yet closed. In addition to the properties
that we have acquired in Kentucky, we are in discussions for the acquisition of additional coal properties located in the United States.
Five Mile Mine
In December 2012, we entered into an agreement to purchase (i) the ownership and mineral rights to approximately 7,695 acres of land in Breathitt
County, Kentucky, which is referred to as the Five Mile Mine, and (ii) approximately 18,335 acres in Campbell and Scott Counties in Tennessee, which is
referred to as the Tennessee Property. As discussed more fully below, our agreement to acquire the Tennessee Property has terminated and is of no further force
or effect.
The Five Mile Mine encompasses at least nine seams. The mineable reserves we expect to mine are in the Hazard seven through eleven seams as well as
Skyline seams one through four. These seams are included in the areas between Howards Creek and Middle Fork on the east and west sides of the property
and Howards Creek to Lick Branch on the north and south sides of the property. Historically, these seams contain low to high quality bituminous steam coal
which has been mined from the Pre-Civil War era until the present. Available geological mapping from the United States Geological Survey (U.S.G.S.) shows
the site to be underlain by the Breathitt formation which consists of cyclic sequences of sandstone, shale, coals and fireclays.
The repayment schedule has been recommenced and, as a result, in January 2014, the Company was
granted access to develop and mine at the Five Mile Mine. The Company is continuing to pursue the acquisition of title to the Five Mile Mine and currently
anticipates that it will close that acquisition by the end of 2014.
Marrowbone Mine
We have entered into a letter of intent to acquire all of the issued and outstanding capital stock of a corporation that holds title and mineral evacuation
rights to approximately 1,900 mineral acres in Cumberland County, Kentucky, which is known as Marrowbone Mine. We are currently in advanced
negotiations relating to the acquisition of Marrowbone Mine. The letter of intent relating to the acquisition had an exclusivity period that ran through March 31,
2014, although management continues to negotiate for the acquisition of the marrowbone Mine.
Tennessee Property
We previously entered into an agreement to acquire ownership and leasehold interests, including rights, title, permits and leases to coal mines, to the
Tennessee Property. However, as we were not able to obtain the necessary financing to satisfy its payment obligations under the purchase agreement for the
Tennessee Property, we entered into an agreement, pursuant to which it was to be permitted to use the property through a one-year lease agreement. On June 7,
2013, due to a default under the lease agreement, we assigned all rights under the permits, mining contracts and other mining assets relating to the Tennessee
Property back to the seller. As a result of the default, our agreement to acquire the Tennessee Property terminated and is of no further force or effect. We may be
liable to the seller for damages or any amounts owed under the agreements; however, as of the date hereof, the seller has not initiated any actions against us
based on such defaults.
Rock Formations, Mineralization and Reserves
The properties in Kentucky also include natural gas wells and projects relating to extraction of timber, sand, gravel, fly ash and dimension stone. We
expect third parties to extract some of these commodities on the properties and pay royalties; however, we may decide to extract these commodities itself.
Vessel Name
Vessel Type
Year Built
Size (dwt)
Charter Expiration Date
Dry Bulk Vessels
NewLead Albion
Handysize
2012
32,318
Spot
TBN
Handysize
2013
35,531
NewLead Venetico
Handysize
2012
32,500
Spot
NewLead Victoria
Panamax
2002
75,966
Q2 2018 - Q3 2018
NewLead Markela
Panamax
1990
71,733
Spot
Tanker Vessels
Captain Nikolas I
Small Tanker
2009
5,887
Q2 2015
M/T Sofia
Small Tanker
2008
2,888
Spot
Gema
Oil Tanker
2001
19,831
Spot
