Investors Hillair Capital, View Capital also receive warrants, shares
By Toni Weeks
San Diego, Nov. 20 - ESP Resources, Inc. sold $1 million of 16% senior secured convertible debentures in a private placement on Nov. 14, according to an 8-K filed with the Securities and Exchange Commission. Hillair Capital Investments, LP and View Capital, LP were the investors.
The debentures are due 2014 and are convertible into common stock at a conversion price of $0.085 per share.
Investors also received a number of warrants equal to the principal amount of the debentures divided by the conversion price. The warrants are exercisable at $0.09 per share.
The conversion price and strike price are 21.43% and 28.57% premiums to the closing share price of $0.07 on Nov. 13.
The company also issued 4 million shares to the investors.
ESP is an oil and gas services company based in the Woodlands, Texas.
| Issuer: | ESP Resources, Inc.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | $1 million
|
| Maturity: | March 1, 2014
|
| Coupon: | 16%
|
| Conversion price: | C$0.085
|
| Warrants: | Equal to the principal amount of the debentures divided by the conversion price
|
| Warrant strike price: | $0.09
|
| Investors: | Hillair Capital Investments, LP and View Capital, LP
|
| Settlement date: | Nov. 14
|
| Stock symbol: | OTCBB: ESPI
|
| Stock price: | $0.07 at close Nov. 13
|
| Market capitalization: | $9.56 million
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