By Sheri Kasprzak
New York, July 26 - New Frontier Energy Inc. said it has completed a private placement of investment units for $2.76 million.
The company sold 92 investment units at $30,000 each.
The units include $30,000 in two-year convertible notes and a warrant for 12,500 shares.
The note bears interest at 2.5% annually and is convertible into 25,000 shares at $1.20 each.
The warrants are exercisable for an additional common share at $2.00 each for three years.
Westminster Securities Corp. was the placement agent.
The proceeds will be used for capital expenses to develop oil and gas properties and for working capital and general corporate purposes.
Denver-based New Frontier is an oil and natural gas exploration, acquisition and development company.
| Issuer: | New Frontier Energy Inc.
|
| Issue: | Investment units of $30,000 in convertible notes and a warrant for 12,500 shares
|
| Amount: | $2.76 million
|
| Units: | 92
|
| Price: | $30,000
|
| Maturity: | Two years
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
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| Conversion price: | $1.20
|
| Conversion ratio: | Into 25,000 common shares
|
| Warrants: | For 12,500 shares per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $2.00
|
| Placement agent: | Westminster Securities Corp.
|
| Settlement date: | July 26
|
| Stock price: | $1.60 at close July 25
|
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