By Sheri Kasprzak
New York, March 17 - Foothills Resources, Inc. said it has pocketed $997,500 in principal of convertible debentures in an offering for up to $3 million in proceeds.
The 9% debentures mature in three years and are convertible into units of one share and one quarter-share warrant at $0.70 each.
The whole warrants are exercisable, upon conversion, at $1.25 each for five years.
The units, once converted, will be part of an already announced $7 million private placement of units.
The offering is being conducted as part of Foothills' merger with Brasada Resources, LLC, a private oil and gas exploration company. The merger is expected to close by May 31.
On Feb. 17, the company priced a $7 million unit offering as part of the merger agreement.
Under the terms of the unit deal, Foothills plans to sell 8.75 million units at $0.80 each.
The units are comprised of one share and one quarter-share warrant, the whole of which is exercisable at $1.25 each for five years.
Based in Launceston, England, Foothills is a mineral exploration company.
| Issuer: | Foothills Resources, Inc.
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| Issue: | Convertible debentures
|
| Amount: | $997,500
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| Maturity: | Three years
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| Coupon: | 9%
|
| Price: | Par
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| Yield: | 9%
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| Conversion price: | Into units of one share and one quarter-share warrant at $0.70 each
|
| Warrants: | One quarter-share warrant per unit upon conversion
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.25
|
| Settlement date: | March 17
|
| Stock symbol: | OTCBB: FTRS
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