Deal sells 8% senior secured debentures due 2014, convertible at $4.25
By Devika Patel
Knoxville, Tenn., June 20 - Recovery Energy, Inc. said it negotiated a $2.2 million private placement of senior secured convertible debentures.
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.
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Issue: | Senior secured convertible debentures
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Amount: | $2.2 million
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Maturity: | 2014
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Coupon: | 8%
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Conversion price: | $4.25
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Conversion premium: | 167.3%
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Warrants: | No
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Pricing date: | June 20
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Stock symbol: | Nasdaq: RECV
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Stock price: | $1.59 at close June 19
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Market capitalization: | $29.64 million
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