Deal has warrant coverage; proceeds to fund upcoming drilling campaign
By Devika Patel
Knoxville, Tenn., Nov. 30 – Royale Energy Inc. raised $203,163 in a private placement of stock on Nov. 25, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company sold 497,948 common shares at $0.408 per share, which is a 16.74% discount to the Nov. 24 closing share price of $0.49.
The investors also received three-year warrants for 248,973 shares. Each warrant is exercisable at $1.00. The strike price is a 104.08% premium to the Nov. 24 closing price.
Proceeds will be used for Royale’s upcoming drilling campaign and operating capital.
San Diego, Calif.-based Royale Energy is an independent oil and natural gas producer.
| Issuer: | Royale Energy Inc.
|
| Issue: | Common shares
|
| Amount: | $203,163
|
| Shares: | 497,948
|
| Price: | $0.408
|
| Warrants: | For 248,973 shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $1.00
|
| Settlement date: | Nov. 25
|
| Stock symbol: | Nasdaq: ROYL
|
| Stock price: | $0.49 at close Nov. 24
|
| Market capitalization: | $7.08 million
|
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