Units will each consist of 500 Microbonds and 2,500 series A warrants
By Devika Patel
Knoxville, Tenn., Oct. 24 - Rockdale Resources Corp. priced a $10 million public offering of units in a Form S-1 filed Wednesday with the Securities and Exchange Commission.
The company will sell 2,000 units of 500 Microbonds and 2,500 series A warrants at $5,000 per unit on a best-efforts basis. The 12% bonds are being issued in $10.00 increments and convert to common stock at $2.00 per share. They mature in 2017.
The whole warrants are exercisable at $2.00 for five years.
The bond conversion price and warrant strike price are a 69.49% premium to the Oct. 23 closing share price of $1.18.
The Microbonds will be secured by any oil or gas wells drilled, completed or acquired with the proceeds from this offering.
Proceeds will be used to purchase additional production and storage equipment and upgrade rail tracks at the Sombra plant, for marketing and sales to expand the company's network and sell processors to network members, to pay demand notes and for working capital and general corporate purposes.
The oil and gas explorer is based in Austin, Tex.
| Issuer: | Rockdale Resources Corp.
|
| Issue: | Units of 500 Microbonds and 2,500 series A warrants
|
| Amount: | $10 million
|
| Units: | 2,000
|
| Price: | $5,000
|
| Maturity: | 2017
|
| Coupon: | 12%
|
| Conversion price: | $2.00
|
| Warrants: | 2,500 warrants per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.00
|
| Pricing date: | Oct. 24
|
| Stock symbol: | OTCBB: BBLS
|
| Stock price: | $1.18 at close Oct. 23
|
| Market capitalization: | $17.11 million
|
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