National Coal raises $3.62 million through exercise of purchase rights

By Sheri Kasprzak

Atlanta, Jan. 3 - National Coal Corp. said it raised $3.62 million after investors exercised additional purchase rights on preferreds sold in August 2004.

The company sold 241.33 shares of series A convertible preferreds to investors who participated in a previously announced private placement of series A preferreds and convertible promissory notes.

The investors in a private placement of $16 million in preferreds sold Aug. 31, 2004 bought the additional preferreds at $15,000.21 each.

The preferreds are convertible into 10,000 common shares at $1.50 each.

The investors also received warrants for 482,660 shares at $2.10 each through Aug. 31, 2006.

The investors in the original preferreds offering, include Asset Managers International Ltd., Gil Avidar, Big Bend XII Investments LP, Blackpool Partners LLC, Joel Chestler, Crestview Capital Master LLC, Dara Fieldman, Steward & Jennifer Flink, Scott P. George, GLL Single Strategy LP, Steven J. Halpern, Jacob Capital LLC, Richard P. Kiphart, Lachman Family LP, Joseph Levy Jr. Declaration of Trust, Nancy Hoyt Revocable Trust, Bear Stearns via Nathan A. Low Roth IRA, North Sound Legacy Fund LLC, North Sound Legacy Institutional Fund LLC, North Sound Legacy International Ltd., RHP Master Fund Ltd., Eugene V. Rintels, Byron Rubin, Gerald J. Rubin, Stonestreet LP, Tiberius Investments & Capital, Thomas J. Ginley Life Insurance Trust, Treeline Investment Partners LP, David Valentine, Whalehaven Capital LP, Whalehaven Fund Ltd., Woodland Financial Group LLC and CD Investment Partners Ltd.

Also, holders of the $3 million in convertible promissory notes sold Aug. 31, 2004 converted the notes into 200 shares of series A preferreds and warrants for 400,000 common shares. The conversion price on the promissory notes was $15,000 per share.

The investors in the promissory notes were Crestview Capital Master LLC and SDS Capital Group SPC Ltd.

Burnham Hill Partners and William Blair & Co. were the placement agents in the private placement.

National Coal, based in Knoxville, Tenn., is a coal mineral acquisition company.

Issuer:	National Coal Corp.
Issue:	Series A convertible preferred stock
Amount:	$3.62 million
Price:	$15,000.21
Conversion price:	$1.50
Conversion ratio:	Into 10,000 shares
Warrants:	For 482,660 shares
Warrant expiration:	Aug. 31, 2006
Warrant strike price:	$2.10
Placement agents:	Burnham Hill Partners and William Blair & Co.
Investors:	Asset Managers International Ltd., Gil Avidar, Big Bend XII Investments LP, Blackpool Partners LLC, Joel Chestler, Crestview Capital master LLC, Dara Fieldman, Steward & Jennifer Flink, Scott P. George, GLL Single Strategy LP, Steven J. Halpern, Jacob Capital LLC, Richard P. Kiphart, Lachman Family LP, Joseph Levy Jr. Declaration of Trust, Nancy Hoyt Revocable Trust, Bear Stearns via Nathan A. Low Roth IRA, North Sound Legacy Fund LLC, North Sound Legacy Institutional Fund LLC, North Sound Legacy International Ltd., RHP Master Fund Ltd., Eugene V. Rintels, Byron Rubin, Gerald J. Rubin, Stonestreet LP, Tiberius Investments & Capital, Thomas J. Ginley Life Insurance Trust, Treeline Investment Partners LP, David Valentine, Whalehaven Capital LP, Whalehaven Fund Ltd., Woodland Financial Group LLC and CD Investment Partners Ltd.
Settlement date:	Aug. 31
Rights exercised:	Dec. 29
Stock price:	$2.35 at close Aug. 31
Stock price:	$3.15 at close Dec. 29

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