By Sheri Kasprzak
New York, Jan. 6 - Maverick Oil and Gas, Inc. said it has wrapped a $20 million private placement of convertible debentures.
The 7.5% debentures mature Jan. 5, 2009 and are convertible into common shares at $0.94 each.
The investors also received warrants for 31,996,587 shares, exercisable for five years at prices ranging from $0.94 to $2.00 each.
Proceeds will be used for activities in the Fayetteville Shale Play in Arkansas and for ongoing development of the company's Barnett Shale program in Texas. The rest will be used to prepay a $2 million convertible note issued in October 2005 and for other corporate purposes.
Based in Fort Lauderdale, Fla., Maverick Oil and Gas is an oil and natural gas exploration, exploitation, development and production company.
| Issuer: | Maverick Oil and Gas, Inc.
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| Issue: | Convertible debentures
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| Amount: | $20 million
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| Maturity: | Jan. 5, 2009
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| Coupon: | 7.5%
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| Price: | Par
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| Yield: | 7.5%
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| Conversion price: | $0.94
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| Warrants: | For 31,996,587 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | From $0.94 to $2.00 per share
|
| Settlement date: | Jan. 5
|
| Stock price: | $0.79 at close Jan. 5
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