New Issue: Nova Energy completes $1.23 million placement of 6% convertible notes

By Devika Patel

Knoxville, Tenn., April 19 - Nova Energy, Inc. settled a private placement of secured convertible notes with Tonaquint, Inc. for $1.23 million on April 5, according to an 8-K filed Monday with the Securities and Exchange Commission.

The 6% note is due April 4, 2012. It is convertible into common stock at 70% of the average volume-weighted average price for the three trading days with the lowest volume-weighted average price during the 20 trading days immediately preceding the date of the conversion notice.

Tonaquint also received warrants for 200,000 common shares, which are exercisable at $1.00 until April 4, 2012.

The oil and gas explorer is based in Carson City, Nev.

Issuer:	Nova Energy, Inc.
Issue:	Secured convertible notes
Amount:	$1,226,500
Maturity:	April 4, 2012
Coupon:	6%
Price:	Par
Yield:	6%
Warrants:	For 200,000 shares
Warrant expiration:	April 4, 2012
Warrant strike price:	$1.00
Investor:	Tonaquint, Inc.
Settlement date:	April 5
Stock symbol:	OTCBB: NVAE
Stock price:	$0.27 at close April 5

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