By Sheri Kasprzak
New York, Oct. 5 - Radial Energy Inc. concluded a $5 million private placement of convertible debentures with Cornell Capital Partners, LP.
The three-year debentures bear interest at 7% annually and are convertible into common stock at the lower of $1.0536 or 90% of the lowest volume weighted average price for the 15 trading days before conversion.
So far, Cornell has funded the first tranche of the offering for $2 million.
Cornell also received warrants for 9,166,667 shares, exercisable at prices ranging from $0.75 to $1.50 each.
Proceeds will be used for ongoing projects, including the Block 100 project in Peru, the Cherokee County prospects in Texas and the Bosques project in Colombia.
Houston-based Radial is an oil and natural gas exploration company.
| Issuer: | Radial Energy Inc.
|
| Issue: | Convertible debentures
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| Amount: | $5 million
|
| Maturity: | Three years
|
| Coupon: | 7%
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| Price: | Par
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| Yield: | 7%
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| Conversion price: | The lower of $1.0536 or 90% of the lowest VWAP for the 15 trading days before conversion
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| Warrants: | For 9,166,667 shares
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| Warrant strike price: | From $0.75 to $1.50
|
| Settlement date: | Oct. 5
|
| Stock symbol: | OTCBB: RENG
|
| Stock price: | $0.80 at close Oct. 5
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