New York, June 28 - CanArgo Energy Corp. said it has entered into agreements for a $10 million private placement of third lien guaranteed convertible notes.
The notes are due June 28, 2010 and are convertible into stock at $1.00 per share.
The notes pay interest at 12%.
The investor, New York based investment firm, Persistency Capital, acting for the Cayman based fund, Persistency, will receive warrants for 12.5 million shares, exercisable for two years at $1.00 each.
Proceeds will be used to advance the company's appraisal and development activities in Georgia including further development of the Ninotsminda Field, and appraisal of the Kumisi gas discovery.
New York-based CanArgo is an oil and natural gas exploration company.
Issuer: | CanArgo Energy Corp.
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Issue: | Third lien guaranteed convertible notes
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Amount: | $10 million
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Maturity: | June 28, 2010
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Coupon: | 12%
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Conversion price: | $1.00
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Warrants: | For 12.5 million shares
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Warrant expiration: | Two years
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Warrant strike price: | $1.00
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Announcement date: | June 28
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Stock symbol: | Amex: CNR
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Stock price: | $0.74 at close June 28
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