Deal sells convertibles to raise funds for oil and gas acquisitions
By Devika Patel
Knoxville, Tenn., Jan. 31 - Core Resource Management, Inc. said it settled the first tranche of a private placement of senior convertible notes for $2.85 million on Wednesday.
The 7% notes, which mature in four years, are convertible into common stock at $3.00 per share.
The conversion price reflects a 25.93% discount to the Jan. 29 closing share price of $4.05.
"This represents the initial tranche in what we expect to raise for oil and gas acquisitions," chief executive officer Brown Glenn Jr. said in a press release.
"Our strategy is to maximize shareholder value by minimizing the overhead costs between the shareholders of the company and the production cash flows of acquired reserves.
"We intend to file our Form 10 registration statement during the second quarter and apply to move our listing to the NYSE-AMEX within 48 months in order to give our shareholders and converting note holders maximum liquidity," he added.
Core Resource Management is a Dallas-based oil and gas company.
| Issuer: | Core Resource Management, Inc.
|
| Issue: | Senior convertible notes
|
| Amount: | $2.85 million
|
| Maturity: | Four years
|
| Coupon: | 7%
|
| Conversion price: | $3.00
|
| Warrants: | No
|
| Settlement date: | Jan. 30
|
| Stock symbol: | Pink Sheets: CRMI
|
| Stock price: | $4.05 at close Jan. 29
|
| Market capitalization: | $1.26 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
