By Devika Patel
Knoxville, Tenn., Nov. 21 - Fox Petroleum Inc. amended its agreement with Trafalgar Capital Specialized Investment Fund, Luxembourg in regards to a $2.5 million private placement of convertible debentures which settled in June, according to an 8-K filed Friday with the Securities and Exchange Commission.
The amendment, which settled Nov. 11, allowed the company to sell an additional $1 million in debentures to Trafalgar and also amended the terms of the original $2.5 million notes.
The $2.5 million in amended debentures mature on April 30, 2009 and bear an annual interest rate of 10%. They are convertible into common shares at the lesser of the volume weighted average price of the company's stock as quoted by Bloomberg LP on Oct. 31 or 80% of the lowest daily closing volume weighted average price as quoted by Bloomberg during the 5 trading days immediately preceding the conversion date.
The $1 million new debenture matures on Oct. 31, 2010 and also has a 10% coupon. It has the same conversion terms as the amended notes.
The original warrant was amended and replaced so that it is exercisable for 2 million common shares at $0.001 per share.
Trafalgar also received 2.5 million common shares.
Fox is an oil and gas exploration company based in London.
| Issuer: | Fox Petroleum Inc.
|
| Issue: | Convertible debenture
|
| Amount: | $3.5 million
|
| Maturity: | April 30, 2009 for $2.5 million, Oct. 31, 2010 for $1 million
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | Lesser of the volume weighted average price as quoted by Bloomberg LP on Oct. 31 or 80% of the lowest daily closing volume weighted average price as quoted by Bloomberg during the five trading days immediately preceding the date of conversion
|
| Warrants: | For 2 million shares
|
| Warrant strike price: | $0.001
|
| Investor: | Trafalgar Capital Specialized Investment Fund, Luxembourg
|
| Settlement date: | Nov. 11
|
| Stock symbol: | OTCBB: FXPT
|
| Stock price: | $0.78 at close Nov. 11
|
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