Brokered offering includes common stock, series B, series C warrants
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., Dec. 27 - Lucas Energy, Inc. said it plans a registered direct offering of units. The deal will raise about $6 million.
The company will sell about 2.5 million units of one common share and two warrants at $2.38 apiece.
The series B warrants will be exercisable at $2.86 for five years following the 185th day after closing. The series C warrants will be exercisable at $2.62 for a 10-trading day period ending on the 215th day after closing. The strike prices are 20.17% and 10.08% premiums to the Dec. 23 closing share price of $2.38.
TriPoint Global Equities, LLC is the agent. Investors included Hall Phoenix Inwood Ltd.
"The proceeds raised will allow us to execute our Eagle Ford program as well as expand our other drilling and work-over activity during 2011," president and chief executive officer William A. Sawyer said in a press release. "We are excited at the potential for receiving additional major cash infusions if these warrants are exercised."
John O'Keefe, chief financial officer, told Prospect News that the "market reaction [to the deal] has been very strong."
Houston-based Lucas is an oil and natural gas exploration and development company.
| Issuer: | Lucas Energy, Inc.
|
| Issue: | Units of one common share and two warrants
|
| Amount: | $6 million (approximate)
|
| Units: | 2.5 million (approximate)
|
| Price: | $2.38
|
| Warrants: | Two warrants per unit
|
| Warrant expiration: | Five years (series B), 10 days (series C)
|
| Warrant strike price: | $2.86 (series B), $2.62 (series C)
|
| Agent: | TriPoint Global Equities, LLC
|
| Investors: | Hall Phoenix Inwood Ltd.
|
| Pricing date: | Dec. 27
|
| Stock symbol: | Amex: LEI
|
| Stock price: | $2.38 at close Dec. 23
|
| Market capitalization: | $31.81 million
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