By Sheri Kasprzak
New York, May 1 - Ignis Petroleum Group, Inc. has received the final $1 million from its previously announced $5 million private placement of secured convertible debentures.
The debentures, which were to be funded after a registration statement was declared effective, were funded on April 28.
The 7% debentures mature in three years and are convertible into shares at the lesser of $0.93 or 94% of the lowest volume-weighted average price for the 30 trading days before conversion.
The investor received warrants for 2,913,580 shares, exercisable at $0.81 each for five years and warrants for 3,311,828 shares, exercisable at $0.93 each for five years.
The agreement with Cornell was settled on Jan. 9, when the investor funded $2.5 million of the deal.
Stonegate Securities, Inc. was the placement agent.
Based in Dallas, Ignis is an oil and natural gas exploration, acquisition and development company.
| Issuer: | Ignis Petroleum Group, Inc.
|
| Issue: | Secured convertible debentures
|
| Amount: | $1 million
|
| Maturity: | Three years
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | The lesser of $0.93 or 94% of the lowest VWAP for the 30 trading days before conversion
|
| Warrants: | For 6,225,408 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.81 for 2,913,580 shares; $0.93 for 3,311,828 shares
|
| Investor: | Cornell Capital Partners, LP
|
| Placement agent: | Stonegate Securities, Inc.
|
| Settlement date: | April 28
|
| Stock symbol: | OTCBB: IGPG
|
| Stock price: | $1.11 at close April 28
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