Oracle Commodity Holding Corp.: Issuance of Common Shares under Consulting Agreement with Bayer Law Corporation
On February 21, 2025, Oracle Commodity Holding Corp. (TSXV: ORCL) (OTCQB: ORLCF) (“Oracle” or the “Company”) disclosed that it had issued a total of 84,594 common shares pursuant to a Consulting Agreement with Bayer Law Corporation, effective October 2, 2024. The details of this arrangement were previously announced in a news release dated October 3, 2024.
Background of the Consulting Agreement
Oracle entered into the Consulting Agreement with Bayer Law Corporation to receive legal and regulatory consulting services. In lieu of cash compensation, Oracle agreed to issue common shares to Bayer Law Corporation, representing 15% of the total value of the consulting services provided.
Timeline of Share Issuances
Since November 1, 2024, Oracle has issued a total of 84,594 common shares under the Consulting Agreement.
Impact on Oracle
The issuance of common shares under the Consulting Agreement represents a dilutive event for Oracle’s existing shareholders. Dilution occurs when new shares are issued, increasing the total number of outstanding shares and decreasing the percentage ownership of each existing shareholder. In this case, the issuance of shares to Bayer Law Corporation reduces the proportionate ownership of Oracle’s other shareholders.
Impact on Individual Investors
As an individual investor, the issuance of Oracle shares under the Consulting Agreement may affect you in several ways:
- Decreased proportionate ownership: The issuance of new shares dilutes the value of your existing shares, reducing your proportionate ownership in the company.
- Impact on stock price: Dilution can potentially put downward pressure on the stock price as the market revalues the company based on the increased number of outstanding shares.
- Long-term implications: The impact of dilution on individual investors depends on various factors, including the company’s future performance, market conditions, and other factors.
Impact on the World
The issuance of Oracle shares under the Consulting Agreement may have limited direct impact on the world at large, as it primarily affects Oracle’s shareholders and the company’s capital structure. However, it could indirectly impact the market sentiment towards consulting arrangements and share issuances as a means of compensation.
Conclusion
Oracle Commodity Holding Corp.’s announcement of common share issuances under the Consulting Agreement with Bayer Law Corporation represents a dilutive event for the company’s existing shareholders. For individual investors, this could result in decreased proportionate ownership, potential downward pressure on the stock price, and long-term implications based on the company’s future performance. The impact on the world is likely to be minimal, but the arrangement could influence market sentiment towards consulting agreements and share issuances as forms of compensation.
