Deal with One Stone Holdings sells 19.24 million preferreds at $1.22
By Devika Patel
Knoxville, Tenn., May 13 - Magellan Petroleum Corp. arranged a $23.47 million sale of series A convertible preferred stock with One Stone Holdings II LP on May 10, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company will sell 19,239,734 preferreds at $1.22 apiece.
The 7% preferreds have a conversion price of $1.22 per share, which is a 19.61% premium to the May 9 closing price of $1.02. The company may force conversion or redeem the preferreds.
Settlement is expected May 22.
Proceeds will be used for the drilling, completion, and execution of a CO2-enhanced oil recovery ("CO2-EOR") pilot project at Poplar.
Magellan Petroleum is a Hartford, Conn., oil and gas company.
| Issuer: | Magellan Petroleum Corp.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $23,472,476
|
| Preferreds: | 19,239,734
|
| Price: | $1.22
|
| Dividends: | 7%
|
| Conversion price: | $1.22
|
| Call: | Yes
|
| Warrants: | No
|
| Investor: | One Stone Holdings II LP
|
| Pricing date: | May 10
|
| Settlement date: | May 22
|
| Stock symbol: | Nasdaq: MPET
|
| Stock price: | $1.02 at close May 9
|
| Market capitalization: | $45.75 million
|
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