Original issue discount debentures sold for $3 million, a 10% discount
By Devika Patel
Knoxville, Tenn., Oct. 29 - Royale Energy, Inc. priced an offering of $3.33 million of original issue discount convertible notes, which will be sold at a 10% discount for $3 million. C. K. Cooper & Co., Inc. will conduct the deal on a best-efforts basis
The 0% notes are convertible into common stock at $4.50 per share and due Dec. 31, 2014.
The investors also will receive warrants for 500,000 shares. The warrants are each exercisable at $3.00 for three years.
The strike price is a 1.01% premium to the Oct. 26 closing share price of $2.97. The conversion price is a 51.52% premium to that price.
Proceeds will be used for general corporate purposes.
San Diego, Calif.-based Royale Energy is an independent oil and natural gas producer.
| Issuer: | Royale Energy, Inc.
|
| Issue: | Original issue discount convertible notes
|
| Amount: | $3,333,333
|
| Maturity: | Dec. 31, 2014
|
| Price: | $3 million (10% discount)
|
| Conversion price: | $4.50
|
| Warrants: | For 500,000 shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $3.00
|
| Agent: | C. K. Cooper & Co., Inc.
|
| Pricing date: | Oct. 29
|
| Stock symbol: | Nasdaq: ROYL
|
| Stock price: | $2.97 at close Oct. 26
|
| Market capitalization: | $33.27 million
|
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