Original issue discount debentures sold by agent Rodman & Renshaw
By Devika Patel
Knoxville, Tenn., July 27 - Alamo Energy Corp. said it plans a private placement of $1.31 million of original issue discount convertible debentures, which will be sold at a 15% discount for about $1.11 million. Rodman & Renshaw, LLC is the agent.
The 5% debentures are convertible into common stock at $1.00 per share and due in two years.
The investors also will receive series A warrants for 655,310 shares, series B warrants for 1,310,621 shares and series C warrants for 655,310 shares.
The series A warrants are exercisable at $1.25 for five years and the series B warrants are exercisable at $1.00 for one year. The series C warrants vest proportionally after the series B warrants have been exercised and are exercisable at $1.25 for five years. The strike prices are 35.87%, 8.7% and 35.87% premiums to the July 26 closing share price of $0.92.
Settlement is expected July 29.
Alamo Energy is an oil and gas company in London.
| Issuer: | Alamo Energy Corp.
|
| Issue: | Original issue discount convertible debentures
|
| Amount: | $1,310,621
|
| Maturity: | Two years
|
| Coupon: | 5%
|
| Price: | $1,114,000 (approximate, 15%, discount)
|
| Conversion price: | $1.00
|
| Warrants: | For 2,621,241 shares
|
| Warrant expiration: | Five years (series A, series C), one year (series B)
|
| Warrant strike price: | $1.25 (series A, series C), $1.00 (series B)
|
| Agent: | Rodman & Renshaw, LLC
|
| Pricing date: | July 27
|
| Settlement date: | July 29
|
| Stock symbol: | OTCBB: ALME
|
| Stock price: | $0.92 at close July 26
|
| Market capitalization: | $44.29 million
|
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