By Devika Patel
Knoxville, Tenn., June 4 - Far East Energy Corp. plans a $2.15 million private placement of stock with Persistency Capital LLC, according to a prospectus filed Wednesday with the Securities and Exchange Commission. It also plans to raise an additional $5.8 million in a direct offering with other investors.
The company will sell 4.3 million common shares at $0.50 per share to Persistency Capital. These shares will be sold in three tranches. The first tranche, for $2 million, will consist of 4 million shares and the second and third tranches will each consist of 150,000 shares for $75,000.
The company will then conduct three more tranches with other investors: the fourth tranche will include 1.1 million shares for $550,000, the fifth tranche will include 6 million shares for $3 million and the sixth and final tranche will be for 4.5 million shares sold for $2.25 million.
Persistency also will receive 1.4 million warrants in the first tranche and 52,500 warrants in each of the remaining two tranches.
The investors in the fourth tranche will receive 385,000 warrants, the fifth tranche includes 2.1 million warrants and investors in the sixth tranche will receive 1,575,000 warrants.
In total, the company will sell 15.9 million shares and issue 5,565,000 warrants.
Far East is a Houston-based natural gas company focused on coal-bed methane projects.
| Issuer: | Far East Energy Corp.
|
| Issue: | Common stock
|
| Amount: | $7.95 million
|
| Shares: | 15.9 million
|
| Price: | $0.50
|
| Warrants: | 5,565,000
|
| Investor: | Persistency Capital LLC (for $2.15 million)
|
| Pricing date: | June 4
|
| Stock symbol: | OTCBB: FEEC
|
| Stock price: | $0.67 at close June 3
|
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