By Sheri Kasprzak
New York, Feb. 6 - Natural Gas Systems, Inc. said it received another $1 million in a private placement of a loan.
The loan is in addition to a $4.8 million senior secured loan the company received on Feb. 2, 2005 from Prospect Energy Corp.
The loan matures on Feb. 2, 2010 and bears interest at the greater of 14% or the Treasury rate plus 900 basis points.
The investor will receive warrants for up to 150,000 shares, exercisable at $1.4495 each, and revocable warrants for up to 100,000 shares, exercisable at $1.4495 each. The revocable warrants may be cancelled before exercise if the company maintains certain operating cash flow targets.
Proceeds will be used for the development of oil and gas properties, debt repayment and working capital.
Based in Houston, Natural Gas Systems is an oil and natural gas exploration and development company.
| Issuer: | Natural Gas Systems, Inc.
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| Issue: | Senior secured loan
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| Amount: | $1 million
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| Maturity: | Feb. 2, 2010
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| Coupon: | The greater of 14% or the Treasury rate plus 900 basis points
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| Warrants: | For 250,000 shares
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| Warrant strike price: | $1.4495
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| Investor: | Prospect Energy Corp.
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| Settlement date: | Feb. 2
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| Stock symbol: | OTCBB: NGSY
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| Stock price: | $1.50 at close Feb. 2
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