By Sheri Kasprzak
New York, Feb. 15 - Environmental Energy Services, Inc. intends to raise up to $12.5 million from a private placement of series A convertible preferred stock.
The company plans to sell up to 5 million shares of the preferred stock at $2.50 each.
The preferreds are convertible into common shares at the current market price, subject to a $0.20 minimum.
The preferreds pay annual dividends of $0.30 per year, payable quarterly.
Proceeds will be used for drilling on the company's Mirror Image prospect in Louisiana and its working interest in the Fayetteville Shale Field in Arkansas. The rest will be used for working capital.
Based in Sandy Hook, Conn., Environmental Energy Services provides additives to the oil industry.
| Issuer: | Environmental Energy Services, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $12.5 million
|
| Shares: | 5 million
|
| Price: | $2.50
|
| Dividends: | $0.30 annually, payable quarterly
|
| Conversion price: | Market price, $0.20 floor
|
| Warrants: | No
|
| Pricing date: | Jan. 29
|
| Announcement date: | Feb. 15
|
| Stock symbol: | OTCBB: EESV
|
| Stock price: | $0.06 on Feb. 15
|
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