By Sheri Kasprzak
New York, March 3 - CanArgo Energy Corp. said it has entered into agreements for a $13 million private placement of subordinated guaranteed convertible notes.
The notes are due Sept. 1, 2009 and are convertible at $1.37 each.
The notes bear interest at 3% annually through Dec. 31, 2006 and at 10% annually through maturity. The notes are callable after March 1, 2007 at 105% of face value, declining by 1% every six months.
The investors will receive warrants for 13 million shares, exercisable for two years at $1.37 each.
Proceeds will be used to develop the company's Kyzyloi gas field in the Republic of Kazakhstan and to explore programs in Kazakhstan through Tethys Petroleum Investments Ltd.
New York-based CanArgo is an oil and natural gas exploration company.
| Issuer: | CanArgo Energy Corp.
|
| Issue: | Subordinated guaranteed convertible notes
|
| Amount: | $13 million
|
| Maturity: | Sept. 1, 2009
|
| Coupon: | 3% through Dec. 31, 2006; 10% annually thereafter
|
| Conversion price: | $1.37
|
| Call: | Callable after March 1, 2007 at 105% of face value plus interest, declining by 1% every six months
|
| Warrants: | For 13 million shares
|
| Warrant expiration; | Two years
|
| Warrant strike price: | $1.37
|
| Announcement date: | March 3
|
| Stock symbol: | Amex: CNR
|
| Stock price: | $1.16 at close March 3
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
