Company sells three-year 15% promissory notes to fund drilling program
By Devika Patel
Knoxville, Tenn., Aug. 6 - Vanguard Energy Corp. settled a $6.85 million private placement of 15% convertible secured promissory notes on June 29, July 6 and July 31, according to an 8-K filed Monday with the Securities and Exchange Commission. Of the proceeds, $3.8 million was paid in cash and $3.05 million was exchanged for notes the company sold in 2010.
The notes are due June 30, 2015 and are initially convertible into common stock at $1.25 per share. The conversion price is a 43.68% premium to $0.87, the June 28 closing share price.
Proceeds will be used for an accelerated developmental drilling program in southeast Texas and to pay off any 2010 convertible notes that remain outstanding at maturity on Oct. 31.
Vanguard is a Houston-based oil and gas company.
| Issuer: | Vanguard Energy Corp.
|
| Issue: | Convertible secured promissory notes
|
| Amount: | $6,849,500 ($3,799,500 in cash, $3.05 million in exchange for 2010 notes)
|
| Maturity: | June 30, 2015
|
| Coupon: | 15%
|
| Conversion price: | $1.25
|
| Conversion premium: | 43.68%
|
| Warrants: | No
|
| Settlement dates: | June 29, July 6 and July 31
|
| Stock symbol: | OTCBB: VNGE
|
| Stock price: | $0.87 at close June 28
|
| Market capitalization: | $12.07 million
|
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