Energy company offers shares to fund general working capital
By Toni Weeks
San Diego, Nov. 4 - Red Mountain Resources, Inc. completed the final tranche of a planned $25 million private placement of stock, raising another $4.15 million, according to an 8-K filed Friday with the Securities and Exchange Commission. The company said it raised a total of $16.21 million and has completed the offering.
The company sold common shares at $1.00 apiece. The per-share price represents a 21.26% discount to the Sept. 2 closing share price of $1.27.
Red Mountain sold 4.15 million shares on Nov. 4, 2.5 million shares on Sept. 6 and 3.35 million shares on Sept. 7. The company said it sold a total of 16,206,000 shares in the deal.
Proceeds will be used for general working capital. In connection with the placement, any investor that invested at least $2 million may purchase an additional $3 million of shares in the future. Three such investors received that right in the offering and may purchase the additional shares before Dec. 31 at a price equal to the lesser of $1.10 or the average closing price of the stock during the five-day period prior to the purchase and ending five days after the sale.
Red Mountain is a Dallas-based energy company.
| Issuer: | Red Mountain Resources, Inc.
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| Issue: | Common stock
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| Amount: | $16.206 million, down from planned $25 million
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| Shares: | 16.206 million
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| Price: | $1.00
|
| Warrants: | No
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| Settlement dates: | Sept. 6 (for $2.5 million), Sept. 7 (for $3.35 million), Nov. 4 (for $4,151,000)
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| Stock symbol: | OTCBB: RDMP
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| Stock price: | $1.27 at close Sept. 6
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| Market capitalization: | $81.2 million
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