By Jennifer Chiou
New York, March 4 - Recovery Energy, Inc. said it entered into a $4.5 million credit agreement with Hexagon Investments, LLC.
The agreement is effective as of Jan. 29.
The loan bears interest at 15% and will mature on Dec. 1, 2010.
In connection with the refinancing, Hexagon has received 1 million Recovery Energy shares.
Proceeds will be used to finance the repurchase of the Wilke field properties, and the loan is secured by mortgages on the properties.
Hexagon will have the right to force the sale of the properties and use the proceeds to repay the loan after Oct. 29, 2010 if Recovery Energy has not completed a private equity sale to pay the loan in full by that date.
Based in Denver, Recovery Energy is a development stage independent energy company.
| Issuer: | Recovery Energy, Inc.
|
| Issue: | Loan
|
| Amount: | $4.5 million
|
| Maturity: | Dec. 1, 2010
|
| Coupon: | 15%
|
| Investor: | Hexagon Investments, LLC
|
| Announcement date: | March 4
|
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