ESP completes $635,000 of $1.25 million placement of shares

Oil and gas explorer sells shares at $0.08 with three-year warrants

By Devika Patel

Knoxville, Tenn., June 25 - ESP Resources, Inc. settled a $635,000 tranche of a $1.25 million private placement of stock on June 19, according to an 8-K filed Monday with the Securities and Exchange Commission.

The company is selling common shares at $0.08 apiece, a 27.27% discount to the June 18 closing share price of $0.11. It sold 7,937,500 shares in this tranche.

Investors also received two types of three-year warrants for a total of 23,812,500 shares. Half of the warrants are exercisable at $0.15, and the remaining half are exercisable at $0.25. The strike prices are 36.36% and 127.27% premiums, respectively, to the June 18 closing price.

The oil and gas exploration company is based in Scott, Texas.

Issuer:	ESP Resources, Inc.
Issue:	Common shares
Amount:	$1.25 million
Price:	$0.08
Warrants:	For 23,812,500 shares
Warrant expiration:	Three years
Warrant strike prices:	$0.15 (for 11,906,250 shares), $0.25 (for 11,906,250 shares)
Settlement date:	June 19 (for $635,000)
Stock symbol:	OTCBB: ESPI
Stock price:	$0.11 at close June 18
Market capitalization:	$11.8 million

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