By Susanna Moon
Chicago, July 9 - Elixir Petroleum Ltd. said it plans to issue A$2.7 million of convertible notes in a private placement.
The company will place 10.7 million convertible notes at A$0.25 each. The notes carry a coupon of 8% per year.
The notes are convertible into Elixir shares at a price of A$0.25 per share until Oct. 31, 2008 or are redeemable at face value plus interest on Nov. 30, 2008.
Proceeds will be used for gas development in the Gulf of Mexico by Elixir's proposed merger partner Gawler Resources Ltd.
If the company fails to merge with Gawler, the notes, at the option of the holder, are redeemable at face value plus interest within 90 days or are convertible into either Elixir or Gawler shares at A$0.25 per share.
Argonaut Capital Ltd. is the underwriter. Subscribers are Macquarie Bank Ltd., AFM Perseus Fund Ltd. and two other Argonaut clients.
Elixir is an oil and natural gas exploration company based in Subiaco, Western Australia.
| Issuer: | Elixir Petroleum Ltd.
|
| Issue: | Convertible notes
|
| Amount: | A$2.7 million
|
| Notes: | 10.7 million
|
| Price: | A$0.25
|
| Coupon: | 8%
|
| Conversion price: | A$0.25
|
| Call: | Redeemable at face value plus interest on Nov. 30, 2008
|
| Warrants: | No
|
| Underwriter: | Argonaut Capital Ltd.
|
| Investors: | Macquarie Bank Ltd., AFM Perseus Fund Ltd.
|
| Announcement date: | July 9
|
| Stock symbol: | Australia: EXR
|
| Stock price: | A$0.27 at close July 6
|
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