Deal sells 12% series A preferreds with 20% four-year warrant coverage
By Devika Patel
Knoxville, Tenn., June 5 – Torchlight Energy Resources, Inc. settled a $9.8 million private placement of 12%series A convertible preferred stock on June 2, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company sold 98,000 preferreds at $100.00 per preferred. The preferreds convert to common stock at $1.15 per share and are mandatorily convertible after one year.
Investors also received 20% warrant coverage, with each warrant exercisable at $1.40 for five years.
The strike price is a 27.27% premium to the June 1 closing price of $1.10. The conversion price is a 4.55% premium to that price.
Based in League City, Texas, Torchlight is an energy exploration company.
| Issuer: | Torchlight Energy Resources, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $9.8 million
|
| Preferreds: | 98,000
|
| Price: | $100.00
|
| Dividends: | 12%
|
| Conversion price: | $1.15
|
| Conversion premium: | 4.55%
|
| Call: | After one year
|
| Warrants: | 20% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.40
|
| Settlement date: | June 2
|
| Stock symbol: | Nasdaq: TRCH
|
| Stock price: | $1.10 at close June 1
|
| Market capitalization: | $51.11 million
|
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