By Sheri Kasprzak
New York, Nov. 10 - Petrol Oil and Gas, Inc. said it has concluded a private placement of a secured term note for $10 million with Laurus Master Fund, Ltd.
The three-year note bears interest at Prime rate plus 325 basis points with a 10% floor and a 14% ceiling.
Laurus also received warrants for 1 million shares, exercisable at $2.00 each for five years.
The investor has the option to buy up to $40 million in the notes under similar terms at its discretion.
The proceeds from the deal will be used for drilling and developing Petrol's coal bed methane gas fields in Kansas. The rest will be used to install a gas-gathering pipeline and processing system.
Proceeds from the offering are being held in escrow.
Based in Las Vegas, Petrol is an oil, natural gas and coal bed methane exploration company.
| Issuer: | Petrol Oil and Gas, Inc.
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| Issue: | Secured term note
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| Amount: | $10 million
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| Maturity: | Three years
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| Coupon: | Prime rate plus 325 basis points, 10% floor, 14% ceiling
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| Warrants: | For 1 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $2.00
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| Investor: | Laurus Master Fund, Ltd.
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| Settlement date: | Oct. 31
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| Stock price: | $1.60 at close Oct. 31
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