By Sheri Kasprzak
Atlanta, April 5 - Galaxy Energy Corp. said it has agreed to complete a $10 million private placement.
The company plans to sell senior secured convertible notes to Promethean Capital Group LLC.
The notes bear interest at Prime rate plus 725 basis points, mature in five years and are convertible into common shares at $1.88 each.
The notes may also be repaid at any time after three years and may be redeemed upon the effectiveness of a registration statement at 110% of face value in the first year, 107% in the second year and 105% in the third year.
The investor will also receive warrants, exercisable at $1.88 each for three years. The number of warrants available in the offering has not yet been determined.
Based in Denver, Galaxy is an oil and natural gas exploration company. It plans to use the proceeds to develop its existing oil and gas properties.
| Issuer: | Galaxy Energy Corp.
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| Issue: | Senior secured convertible notes
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| Amount: | $10 million
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| Maturity: | Three years
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| Coupon: | Prime rate plus 725 basis points
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| Conversion price: | $1.88
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| Call: | May be repaid at any time after three years; redeemable at 110% in the first year, 107% in the second year and 105% in the third year
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| Warrants: | To be determined
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| Warrant expiration: | Three years
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| Warrant strike price: | $1.88
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| Investors: | Promethean Capital Group LLC
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| Announcement date: | April 4
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| Stock price: | $1.75 at close April 4
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