By Devika Patel
Knoxville, Tenn., June 12 - Falcon Oil & Gas Ltd. said it will sell up to C$55 million of its 11% convertible unsecured debentures on a commercially reasonable efforts basis.
The debentures, which have a term of four years, will be sold in C$1,000 units. Each unit is comprised of C$900 worth of debentures and 250 common shares.
Each debenture will be convertible into common shares at C$0.60 per share. If during the first two years, the volume-weighted average trading price of the company's common shares is C$0.85 or greater for 20 consecutive trading days, the debentures will automatically be converted and investors will receive accrued and unpaid interest, in cash.
Salman Partners Inc. is the agent.
Settlement is expected on June 23.
Proceeds will be used for development activities on the areas covered by the company's Hungarian exploration and production licenses.
Falcon is an oil and natural gas exploration and development company based in Toronto.
| Issuer: | Falcon Oil & Gas Ltd.
|
| Issue: | Units of C$900 of convertible unsecured debentures and 250 common shares
|
| Amount: | C$55 million
|
| Price: | C$1,000
|
| Warrants: | No
|
| Agent: | Salman Partners Inc.
|
| Pricing date: | June 12
|
| Settlement date: | June 23
|
| Stock symbol: | TSX Venture: FO
|
| Stock price: | C$0.54 at close June 11
|
| Market capitalization: | C$310 million
|
|
|
| Debentures
|
| Maturity: | Four years
|
| Coupon: | 11%
|
| Price: | Par of C$1,000
|
| Yield: | 11%
|
| Conversion price: | C$0.60
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
