By Angela McDaniels
Tacoma, Wash., June 4 - Recovery Energy, Inc. completed a $23.85 million private placement of common stock on Thursday, according to an 8-K filed with the Securities and Exchange Commission on Friday.
The company sold 15,901,200 shares for $1.50 each.
The investors also received one five-year warrant with an exercise price of $1.50 for each share purchased.
T.R. Winston & Co. LLC was the agent.
Hexagon loans modified
In connection with the placement, the company modified its credit agreements with Hexagon Investments, LLC, extending the maturity date of each loan to Dec. 1, 2011 from Dec. 1, 2010 and eliminating the requirement that it complete a private equity sale by Oct. 29 in an amount sufficient to repay the loans in full.
The company issued Hexagon a five-year warrant to purchase 1 million shares at $1.50 per share in connection with the amendments and agreed to issue an additional warrant with the same terms if the loans are not repaid in full by Jan. 1, 2011.
Based in Denver, Recovery Energy is a development-stage independent oil and gas company.
| Issuer: | Recovery Energy, Inc.
|
| Issue: | Common stock
|
| Amount: | $23,851,800
|
| Shares: | 15,901,200
|
| Price: | $1.50
|
| Warrants: | For 15,901,200 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.50
|
| Agent: | T.R. Winston & Co. LLC
|
| Settlement date: | June 3
|
| Stock symbol: | OTCBB: RECV
|
| Stock price: | $3.00 at close June 4
|
| Market capitalization: | $40.07 million
|
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