Deal sells units of preferreds and two warrants to fund debt repayment
By Devika Patel
Knoxville, Tenn., June 13 - Royale Energy Inc. plans to price a public offering of preferred units, according to a prospectus supplement filed Wednesday with the Securities and Exchange Commission. C. K. Cooper & Co., the bookrunning manager, is conducting the sale on a best-efforts basis.
The company will sell 200,000 preferred units of one perpetual non-convertible 8% series A1 cumulative preferred share, one class A warrant and one class B warrant.
Each class A warrant is exercisable at $5.55. Each class B warrant is exercisable at $10.00. The strike prices represent 77.89% and 220.51% premiums, respectively, to the June 12 closing share price of $3.12.
Proceeds will be used to repay all senior debt and for general corporate purposes, which may include capital expenditures on oil and gas properties.
San Diego, Calif.-based Royale Energy is an independent oil and natural gas producer.
| Issuer: | Royale Energy Inc.
|
| Issue: | Units of one perpetual non-convertible 8% series A1 cumulative preferred share, one class A warrant and one class B stock purchase warrant
|
| Units: | 200,000
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| Warrants: | Two warrants per unit
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| Warrant strike price: | $5.55 (class A), $10.00 (class B)
|
| Bookrunner: | C. K. Cooper & Co.
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| Announcement date: | June 13
|
| Stock symbol: | Nasdaq: ROYL
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| Stock price: | $3.12 at close June 12
|
| Market capitalization: | $33.64 million
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