Upsized deal also includes five-year warrants exercisable at $1.00
By Devika Patel
Knoxville, Tenn., June 6 - United American Petroleum Corp. increased a private placement of senior secured convertible promissory notes to $1.59 million from $1.5 million on June 4, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The company settled a $400,000 tranche at pricing on Oct. 14, 2011 and raised an additional $215,000 on June 4.
The 10% notes will be initially convertible at $0.50 per share and are due Oct. 14, 2014.
In addition, the single investor will receive five-year warrants for 1.59 million shares, which are exercisable at $1.00.
The conversion price and strike price are a 41.18% discount and a 17.65% premium, respectively, to the Oct. 13, 2011 closing share price of $0.85.
In the first tranche, the company sold $400,000 of convertibles along with 400,000 warrants. In the second tranche, it sold $215,000 of convertibles with 215,000 warrants.
"This cash infusion will accelerate United's current operations and provide flexibility for future development opportunities. ... The proceeds raised will allow us to work-over existing wells to increase productivity, facilitate corporate operations and additional drilling and acquisition activity during 2011-2012," company president Michael Carey said in a press release at pricing.
United American is an Austin, Texas, oil and gas exploration company.
| Issuer: | United American Petroleum Corp.
|
| Issue: | Senior secured convertible promissory notes
|
| Amount: | $1.59 million
|
| Maturity: | Oct. 14, 2014
|
| Coupon: | 10%
|
| Conversion price: | $0.50
|
| Warrants: | For 1.59 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00
|
| Pricing date: | Oct. 14, 2011
|
| Upsized: | June 4
|
| Settlement dates: | Oct. 14, 2011 (for $400,000), June 4 (for $215,000)
|
| Stock symbol: | OTCBB: UAPC
|
| Stock price: | $0.85 at close Oct. 14, 2011
|
| Market capitalization: | $44.34 million
|
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