New Risk • Jul 31
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Canadian stocks, typically moving 16% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (16% average weekly change). Shareholders have been substantially diluted in the past year (31% increase in shares outstanding). Revenue is less than US$1m. Minor Risk Market cap is less than US$100m (CA$14.3m market cap, or US$10.2m). New Risk • Jul 22
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 31% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Shareholders have been substantially diluted in the past year (31% increase in shares outstanding). Revenue is less than US$1m. Market cap is less than US$10m (CA$13.9m market cap, or US$9.83m). Minor Risk Share price has been volatile over the past 3 months (16% average weekly change). Announcement • Jul 21
Kapa Gold Inc. announced that it has received CAD 2.7868 million in funding On July 20, Kapa Gold Inc. has closed the transaction. The company issued 5,683,666 units at the price of CAD 0.15 for the gross proceeds of CAD 852,549.9. Bringing the total number of Units issued under the offering to 18,578,665 for aggregate gross proceeds of CAD 2,786,799.75. David Paxton, the CEO of Kapa Gold, acquired 300,000 Units under the Offering. There was no material change in Mr. Paxton’s percentage ownership of securities of the Company as a result of his participation in the offering. In connection with the offering, company paid aggregate finders fees of CAD 161,055 in cash and issued 1,073,700 finder warrants to Canaccord Genuity, Haywood Securities, Red Cloud Securities, Research Capital, Ventum Financial and Zuri-Invest AG. 
