By Sheri Kasprzak
New York, Jan. 25 - Tidelands Oil & Gas Corp. said it pocketed $5,396,098 in proceeds from the private placement of $6,569,750 in convertible debentures.
The zero-coupon debentures, priced at 82, mature on Jan. 20, 2008 and are convertible into shares at $0.87 each.
A group of seven institutional investors led by Palisades Master Fund, LP purchased the discounted debentures.
The investors received series A warrants for 2,491,974 shares, exercisable at $0.935 each through Jan. 20, 2009. Tidelands may force the exercise of the warrants if the volume-weighted average price of the company's stock exceeds 250% of the strike price for 20 consecutive trading days.
The investors also received series B warrants for 7,551,432 shares, exercisable at $1.275 each through Feb. 19, 2007. Tidelands may also force the exercise of these warrants if the volume-weighted average price of the company's stock exceeds 150% of the strike price for 20 consecutive trading days.
HPC Capital Management LLC was the placement agent.
Proceeds will be used for working capital.
Based in San Antonio, Tidelands provides transportation, distribution and storage services for the oil and natural gas sector.
| Issuer: | Tidelands Oil & Gas Corp.
|
| Issue: | Convertible debentures
|
| Amount: | $6,569,750
|
| Proceeds: | $5,396,098
|
| Maturity: | Jan. 20, 2008
|
| Coupon: | 0%
|
| Price: | 82
|
| Conversion price: | $0.87
|
| Warrants: | Series A warrants for 2,491,974 shares; series B warrants for 7,551,432 shares
|
| Warrant expiration: | Jan. 20, 2009 for series A; Feb. 19, 2007 for series B
|
| Warrant strike price: | $0.935 for series A; $1.275 for series B
|
| Placement agent: | HPC Capital Management LLC
|
| Investor: | Palisades Master Fund, LP (lead)
|
| Settlement date: | Jan. 20
|
| Stock symbol: | OTCBB: TIDE
|
| Stock price: | $0.90 at close Jan. 20
|
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