GreenHunter to sell $12.5 million of 10% cumulative preferred stock

By Stephanie N. Rotondo

Portland, Ore., Dec. 8 - GreenHunter Energy Inc. intends to sell at least $12.5 million of 10% series C cumulative preferred stock, according to an S-1 filed with the Securities and Exchange Commission on Thursday.

The company anticipates having a $1.875 million over-allotment option.

The liquidation preference is $100 per share, though the price per share for the preferreds has not yet been set.

Greenhunter can call the preferreds after 2015, or in the event of a change of ownership or control.

Additionally, for each preferred share purchased, buyers will receive 10 warrants for common stock.

The strike price is $2.00 per share, a 153% premium over the day's closing share price of 79 cents (AMEX: GRH).

The warrants are immediately exercisable until the third anniversary of the date of issuance. The company can force holders to redeem the warrants in certain cases.

The company intends to list the preferreds shares on the NYSE Amex under the symbol "GRHPC."

C. K. Cooper & Co. is underwriting the public offering.

Proceeds will be used for capital expenditures, working capital, acquisitions, directly or indirectly, of salt water disposal facilities, repayment or refinancing of indebtedness, investments in subsidiaries, or general corporate purposes.

Greenhunter is a Grapevine, Texas-based provider of water management services for oil and gas exploration in shale fields.

© 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.