Deals priced in June for $2.5 million of stock and $30 million notes
By Devika Patel
Knoxville, Tenn., Aug. 6 – Royal Energy Resources, Inc. said it increased an oversubscribed private placement of stock to $7.5 million and decreased a private offering of convertible notes to $25 million. The offerings priced for $2.5 million and $30 million on June 8 and June 9.
The company will now sell 3 million common shares at $2.50 per share. The price per share is a 56.9% discount to the June 5 closing share price of $5.80.
In addition, the company will sell $25 million of 6.75% convertible notes. The notes convert to stock at $15.00 per share, a 150% premium to the June 8 closing share price of $6.00.
Proceeds will be used for operations and acquisitions.
The gold, silver, copper and rare earth metals explorer is based in Charleston, S.C.
| Issuer: | Royal Energy Resources, Inc.
|
| Issue: | Common stock, convertible notes
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| Amount: | $42.5 million
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| Amended: | Aug. 6
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| Warrants: | No
|
| Stock symbol: | OTCBB: ROYE
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| Market capitalization: | $123.7 million
|
|
|
| Stock
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| Amount: | $7.5 million
|
| Shares: | 3 million
|
| Price: | $2.50
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| Pricing date: | June 8
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| Stock price: | $5.80 at close June 5
|
|
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| Convertibles
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| Amount: | $25 million
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| Coupon: | 6.75%
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| Conversion price: | $15.00
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| Conversion premium: | 150%
|
| Pricing date: | June 9
|
| Stock price: | $6.00 at close June 8
|
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