By Devika Patel
Knoxville, Tenn., June 30 - Falcon Oil & Gas Ltd. said it sold C$11.91 million of its 11% convertible unsecured debentures. The offering priced for up to C$55 million on June 12.
The debentures, which have a term of four years, were sold in C$1,000 units. Each unit is comprised of C$900 worth of debentures and 250 common shares.
Each debenture is 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 interest in cash.
Salman Partners Inc. was the agent.
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 in convertible unsecured debentures and 250 common shares
|
| Amount: | C$11.91 million
|
| Price: | C$1,000
|
| Agent: | Salman Partners Inc.
|
| Pricing date: | June 12
|
| Settlement date: | June 30
|
| Stock symbol: | TSX Venture: FO
|
| Stock price: | C$0.54 at close June 11
|
|
|
| Debentures
|
| Maturity: | Four years
|
| Coupon: | 11%
|
| Price: | Par of C$1,000
|
| Yield: | 11%
|
| Conversion price: | C$0.60
|
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