Deal sells 8% senior secured debentures due 2014, convertible at $4.25
By Devika Patel
Knoxville, Tenn., Oct. 7 - Recovery Energy, Inc. raised $1.04 million in the second and final tranche of a $2.2 million private placement of senior secured convertible debentures on Oct. 7, according to an 8-K filed Monday with the Securities and Exchange Commission. The deal priced on June 20 and raised $1.16 million on Aug. 15.
The convertible debentures mature on in 2014. The securities accrue interest at 8% per year. The debenture may be converted into common shares at $4.25 per share, a 167.3% premium to the June 19 closing share price of $1.59.
Proceeds will be used for a portion of the drilling program on the company's Wattenberg properties in Weld County, Colo., as well as for general corporate purposes.
Based in Denver, Recovery Energy is a development-stage independent oil and gas company.
| Issuer: | Recovery Energy, Inc.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | $2.2 million
|
| Maturity: | 2014
|
| Coupon: | 8%
|
| Conversion price: | $4.25
|
| Conversion premium: | 167.3%
|
| Warrants: | No
|
| Pricing date: | June 20
|
| Settlement date: | Aug. 15 (for $1.16 million), Oct. 7 (for $1.04 million)
|
| Stock symbol: | Nasdaq: RECV
|
| Stock price: | $1.59 at close June 19
|
| Market capitalization: | $42.23 million
|
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