By Sheri Kasprzak
Atlanta, June 20 - Fellows Energy Ltd. said it has completed a direct placement for $5,501,199 in convertible debentures for proceeds of $3,849,685.
The zero-coupon debentures, which were priced at 70, mature in 27 months and are convertible into common shares at $0.60 each.
The investors also received warrants for 4,584,334 shares, exercisable at 110% of the closing bid price on June 16. The warrants expire June 17, 2008.
The debentures are redeemable at 110% of face value.
HPC Capital Management was the placement agent.
Based in Broomfield, Colo., Fellows is a coal-bed methane exploration company. The proceeds will be used for working capital.
| Issuer: | Fellows Energy Ltd.
|
| Issue: | Convertible debentures
|
| Amount: | $5,501,199
|
| Proceeds: | $3,849,685
|
| Maturity: | 27 months
|
| Coupon: | 0%
|
| Price: | 70
|
| Conversion price: | $0.60
|
| Warrants: | For 4,584,334 shares
|
| Warrant expiration: | June 17, 2008
|
| Warrant strike price: | 110% of the closing bid price on June 16 ($0.59)
|
| Placement agent: | HPC Capital Management
|
| Settlement date: | June 17
|
| Stock price: | $0.60 at close June 17
|
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