By Devika Patel
Knoxville, Tenn., April 15 - Epic Energy Resources, Inc. settled a $3.6 million private placement of its series A convertible preferred stock on April 9, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The company sold 3.6 million preferreds at $1.00 apiece.
Each preferred converts initially into 14 common shares.
The company also entered an agreement with 98% of the holders of its 10% secured debentures due Dec. 5, 2012 under which the investors agreed to waive certain breaches and defer approximately $6 million of principal payments until the end of 2012. In return, the investors received 6 million common shares. The investors who held the remaining 2% of the debentures agreed to a redemption of these securities at par plus interest.
The company also redeemed $1 million of its debentures from Whitebox Advisors, LLC for 14 million common shares and swapped all of its outstanding series C and series D warrants for common stock and preferreds.
Epic is an oil and gas company based in the Woodlands, Texas.
| Issuer: | Epic Energy Resources, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $3.6 million
|
| Shares: | 3.6 million
|
| Price: | $1.00
|
| Conversion ratio: | Into 14 common shares (per preferred)
|
| Warrants: | No
|
| Settlement date: | April 9
|
| Stock symbol: | OTCBB: EPCC
|
| Stock price: | $0.17 at close April 9
|
| Market capitalization: | $7.54 million
|
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