By Devika Patel
Knoxville, Tenn., Aug. 5 - Royale Energy Inc. announced it has negotiated a $1.1 million private placement of stock.
The company will sell 552,764 common shares at $1.99 per share.
Investors also will receive series A warrants for 329,850 shares, which are exercisable at $2.19 for five years; series A-1 warrants for 1,808 shares, which are exercisable at $2.19 for five years; series B warrants for 511,628 shares, which are exercisable at $2.15 for one year; and series C warrants for 306,977 shares, which are exercisable at $2.19 for five years, but only after the series B warrants are exercised.
J.P. Turner & Co. was the agent for one investor.
Proceeds will be used for general working capital that will allow the company to accelerate drilling and development on several key projects ultimately leading to enhanced cash-flow performance.
San Diego, Calif.-based Royale Energy is an independent oil and natural gas producer.
| Issuer: | Royale Energy Inc.
|
| Issue: | Common stock
|
| Amount: | $1.1 million
|
| Shares: | 552,764
|
| Price: | $1.99
|
| Warrants: | For 1,150,263 shares
|
| Warrant expiration: | Five years (for 638,635 shares), one year (for 511,628 shares)
|
| Warrant strike price: | $2.19 (for 638,635 shares), $2.15 (for 511,628 shares)
|
| Agent: | J.P. Turner & Co.
|
| Pricing date: | Aug. 5
|
| Stock symbol: | Nasdaq: ROYL
|
| Stock price: | $2.21 at close Aug. 4
|
| Market capitalization: | $17.6 million
|
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