Three-year agreement, C$5 million 10% loan negotiated with YA Global
By Devika Patel
Knoxville, Tenn., May 18 - Transeuro Energy Corp. said it negotiated a NOK 100 million share purchase agreement with YA Global Master SPV Ltd. The investor will also loan the company C$5 million.
YA has committed to purchase up to NOK 100 million of the company's stock over the course of three years at a 5% discount to the average of the lowest volume-weighted average share price during four consecutive 10-day forward pricing periods.
Under the loan agreement, Transeuro may receive up to C$5 million over two years, which will be advanced in tranches of C$1 million with repayment over one year. The 10% loan will be unsecured.
The company has drawn the first C$1 million tranche of the loan and issued 1 million one-year warrants, each exercisable at C$0.168, a 52.73% premium to the May 17 closing share price of C$0.11.
Completion of these financings was a condition for the company's previously announced senior secured convertible bond offering that is slated to settle on May 22.
"This financing is transformation for the company and underpins the market's belief in our assets," chairman Aage Thoen said in a press release. "The funds have been raised in uncertain financial market conditions and provide the company with the ability to pursue longer-term programs with flexibility and confidence and to engage strategies for further growth as opportunities emerge."
Transeuro is an oil and natural gas company based in Vancouver, B.C.
| Issuer: | Transeuro Energy Corp.
|
| Issue: | Share purchase agreement, loan
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| Investor: | YA Global Master SPV Ltd.
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| Pricing date: | May 18
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| Stock symbol: | TSX Venture: TSU
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| Stock price: | C$0.11 at close May 17
|
| Market capitalization: | C$31.67 million
|
|
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| Share purchase agreement
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| Amount: | NOK 100 million
|
| Tenor: | Three years
|
| Price: | 5% discount
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| Warrants: | No
|
|
|
| Loan
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| Amount: | C$5 million
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| Tenor: | Two years
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| Coupon: | 10%
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| Warrants: | 5 million
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| Warrant expiration | One year
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| Warrant strike price: | C$0.168
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