$620,000 of notes sold with five-year warrants in an initial tranche
By Devika Patel
Knoxville, Tenn., May 17 - United American Petroleum Corp. arranged a $2.25 million private placement of senior secured convertible promissory notes, according to an 8-K filed Friday with the Securities and Exchange Commission. It raised $620,000 in an initial tranche.
The notes convert to common stock at $0.50 per share, which is a 37.5% discount to the May 16 closing share price of $0.80.
The notes are being sold with five-year warrants for 2.25 million common shares. The warrants are exercisable at $1.00, a 25% premium to the May 16 closing share price.
In the first tranche, the company issued 620,000 warrants.
The oil and gas exploration company is based in Austin.
Issuer: | United American Petroleum Corp.
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Issue: | Senior secured convertible promissory notes
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Amount: | $2.25 million
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Conversion price: | $0.50
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Warrants: | For 2.25 million shares
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Warrant expiration: | Five years
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Warrant strike price: | $1.00
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Announcement date: | May 17 (for $620,000)
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Stock symbol: | OTCBB: PEFF
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Stock price: | $0.80 at close May 16
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Market capitalization: | $41.36 million
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