By Sheri Kasprzak
New York, Jan. 22 - New Frontier Energy, Inc. wrapped a private placement of units for $22.225 million.
The company sold 444.5 units at $50,000 each.
The units consist of $50,000 in 2.5% series C cumulative convertible preferred stock, a three-year warrant for 47,619 shares and a three-year warrant for 23,810 shares.
Each preferred is convertible into 47,619 common shares at $1.05 per share.
The warrants for 47,619 shares are exercisable at $1.05 each, and the warrants for 23,810 shares are exercisable at $2.00 each.
Westminster Securities Corp. was the placement agent.
Of the proceeds, $8 million was used to acquire the operator of the Slater Dome Field's 36.66% working interest in 11 gas and one water disposal well, as well as 33,949 acres in the Green River basin in Colorado and Wyoming. The remainder will be used for a drilling program and for working capital.
Based in Denver, New Frontier is an oil and natural gas exploration, acquisition and development company.
| Issuer: | New Frontier Energy, Inc.
|
| Issue: | Units of $50,000 in series C cumulative convertible preferred stock, warrants for 47,619 shares and warrants for 23,810 shares
|
| Amount: | $22.225 million
|
| Units: | 444.5
|
| Price: | $50,000
|
| Conversion ratio: | Each preferred into 47,619 common shares
|
| Conversion price: | $1.05
|
| Warrants: | For 71,429 shares per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $1.05 for 47,619 shares; $2.00 for 23,810 shares
|
| Placement agent: | Westminster Securities Corp.
|
| Settlement date: | Jan. 22
|
| Stock symbol: | OTCBB: NFEI
|
| Stock price: | $1.35 at close Jan. 19
|
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