By Jennifer Chiou
New York, Sept. 3 - ABC Funding, Inc. issued 10,000 new shares of series D preferred stock in a $7 million private placement.
That funding, as well as a cash consideration of $35 million, went toward the acquisition of all of the capital stock of Voyager Gas Corp. The funds included $11.5 million and $22 million drawn from a new revolving credit agreement and term loan agreement, respectively.
ABC Funding granted CIT Capital USA Inc., as administrative agent, a seven-year warrant to purchase up to 24.2 million shares of the company's stock at an exercise price of $0.35 per share.
The preferreds will automatically convert into 17.5 million of ABC Funding common shares upon the effectiveness of an amendment to its certificate of incorporation to increase the number of common shares that it may issue.
The amendment will also change the name of the company to Cross Canyon Energy Corp.
Houston-based ABC Funding has a multi-year inventory of projects in a key domestic hydrocarbon-producing basin. Voyager's natural gas and oil production is located in Duval County, Texas.
| Issuer: | ABC Funding, Inc.
|
| Issue: | Series D preferred stock
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| Amount: | $7 million
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| Preferreds: | 10,000
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| Warrants: | For up to 24.2 million shares
|
| Warrant expiration: | Seven years
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| Warrant strike price: | $0.35
|
| Agent: | CIT Capital USA Inc.
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| Settlement date: | Sept. 3
|
| Stock symbol: | OTCBB: AFDG.OB
|
| Stock price: | $0.80 at close Sept. 2
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