Loans to be evidenced by 6% notes convertible at $1.50
By Marisa Wong
Morgantown, W.Va., Sept. 1 – Lucas Energy, Inc. said it entered into a line of credit for $2.4 million in funding on Aug. 28.
Any funding raised under the line of credit is to be evidenced by 6% convertible promissory notes due Oct. 1, 2016, convertible at $1.50 per share.
The conversion price represents a 0.67% premium to the Aug. 27 closing share price of $1.49.
Also on Aug. 28, the company entered into an amendment of its senior secured note to extend the due date to Oct. 31, 2016. The amendment further provided that the senior lender waive all prior defaults under the senior loan to date.
As previously disclosed, the company was notified of its failure to meet some of the New York Stock Exchange’s continued listing requirements in February 2014. The company subsequently submitted a plan of compliance to the exchange, and the company was granted various extensions to regain compliance. The last of these extensions expired on Aug. 28.
The NYSE had advised the company that its failure to regain compliance with the listing standards would result in the company’s common stock being delisted. The company said it has been in discussions with the exchange regarding transactions involving the line of credit and whether it meets the required listing standards.
Based in Houston, Lucas Energy develops crude oil and natural gas in the Austin Chalk and Eagle Ford formations in South Texas.
| Issuer: | Lucas Energy, Inc.
|
| Issue: | Convertible promissory notes
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| Amount: | Up to $2.4 million
|
| Maturity: | Oct. 1, 2016
|
| Coupon: | 6%
|
| Conversion price: | $1.50
|
| Warrants: | No
|
| Pricing date: | Aug. 28
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| Stock symbol: | NYSE: LEI
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| Stock price: | $1.49 at close Aug. 27
|
| Market capitalization: | $4.33 million
|
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