By Sheri Kasprzak
Atlanta, Nov. 22 - Tidelands Oil & Gas Corp. said Monday it has raised $5 million in convertible debentures.
Mercator Momentum Fund LP, Mercator Momentum Fund III LP, Mercator Advisory Group LLC and Monarch Pointe Fund LP purchased the 7% debentures on Nov. 18. The debentures mature May 18, 2006.
On Nov. 19, the company received $3.2 million for the debentures and the balance of the funds will be paid when the company files a registration statement.
The debentures are convertible into common shares at a 15% discount to market price, subject to a $0.45 floor and a $0.76 ceiling.
Warrants were also issued in the financing warrants for 6,578,948 shares, exercisable through Nov. 18, 2007. Mercator Momentum Fund will receive 417,763 warrants at $0.87 each and 417,763 warrants at $0.80 each. Mercator Momentum Fund III will receive 287,829 warrants at $0.87 each and 287,829 at $0.80 each. Monarch Point Fund will receive 939,145 warrants and 939,145 warrants exercisable at $0.80 each. Mercator Advisory Group received 1,644,737 warrants at $0.87 each and 1,644,737 warrants at $0.80 each.
Tidelands is based in San Antonio, Texas, and operates a natural gas pipeline and gas processing plant.
| Issuer: | Tidelands Oil & Gas Corp.
|
| Issue: | Convertible debentures
|
| Amount: | $5 million
|
| Maturity: | May 18, 2006
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion premium: | 15% discount
|
| Conversion price: | $0.45 floor, $0.76 ceiling
|
| Warrants: | For 6,578,948 shares
|
| Warrant expiration: | Nov. 18, 2007
|
| Warrant strike price: | From $0.80 to $0.87
|
| Investors: | Mercator Momentum Fund LP, Mercator Momentum Fund III LP, Mercator Advisory Group LLC, Monarch Pointe Fund LP
|
| Pricing date: | Nov. 18
|
| Settlement date: | Nov. 19
|
| Stock price: | $0.85 at close Nov. 18
|
| Stock price: | $0.73 at close Nov. 22
|
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