By Devika Patel
Knoxville, Tenn., June 18 - Roxi Petroleum plc said it will raise $5 million through a convertible loan with Arawak Energy Ltd.
The loan will bear interest at Libor plus 700 basis points and is repayable in one year.
If it is not repaid in one year, the loan will convert into approximately 31 million shares at 10p per share.
Arawak also will receive warrants for 18 million shares. The warrants will be exercisable at 10p until March 31, 2010, at 15p until Sept. 30, 2010 and at 20p until March 31, 2011.
Proceeds will be used to develop the Galaz assets and for general administrative purposes.
Roxi Petroleum is a London-based oil exploration company.
| Issuer: | Roxi Petroleum plc
|
| Issue: | Convertible loan
|
| Amount: | $5 million
|
| Coupon: | Libor plus 700 bps
|
| Price: | Par
|
| Yield: | Libor plus 700 bps
|
| Conversion price: | 10p
|
| Conversion rate: | Into 31 million shares
|
| Warrants: | For 18 million shares
|
| Warrant expiration: | March 31, 2011
|
| Warrant strike price: | 10p until March 31, 2010, 15p until Sept. 30, 2010, 20p thereafter
|
| Investor: | Arawak Energy Ltd.
|
| Pricing date: | June 18
|
| Stock symbol: | London: RXP
|
| Stock price: | 11.25p at close June 18
|
| Market capitalization: | £37.7 million
|
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