Investors receive warrant coverage; notes convert at $1.25 per share
By Devika Patel
Knoxville, Tenn., Jan. 24 - Hinto Energy Inc. settled a $2 million private placement of 10% secured convertible promissory notes on Jan. 22, according to an 8-K filed Friday with the Securities and Exchange Commission.
Each note is due in three years and is convertible into common shares at $1.25 per share, which represents a 76.06% premium to $0.71, the Jan. 21 closing share price.
Investors also received warrants for 480,000 shares. Each warrant is exercisable at $2.00 for three years. The strike price is a 181.69% premium to the Jan. 21 closing price.
Proceeds will be used to support operations and for re-completion and drilling plans in the company's oil and gas fields.
The oil and gas company is based in Arvada, Calif.
| Issuer: | Hinto Energy Inc.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $2 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Conversion price: | $1.25
|
| Warrants: | For 480,000 shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $2.00
|
| Settlement date: | Jan. 22
|
| Stock symbol: | OTCBB: HENI
|
| Stock price: | $0.71 at close Jan. 21
|
| Market capitalization: | $16.34 million
|
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