By Devika Patel
Knoxville, Tenn., Aug. 3 - American Natural Energy Corp. said it plans a private placement of $5 million in 0% original issue discount senior secured convertible notes. The company will take in $4 million through the sale.
The notes are initially convertible into common stock at $0.10 per share, which represents a 233.33% premium to the Aug. 2 closing share price of $0.03. They will be sold in two tranches, with the company raising $2 million in each tranche.
The investors also will receive three-year warrants for 19 million shares in the first tranche and for 12 million shares in the second. The first-tranche warrants are exercisable at $0.15 and the second-tranche warrants are exercisable at $0.25.
Tulsa, Okla.-based American Natural is an oil and natural gas exploration company.
| Issuer: | American Natural Energy Corp.
|
| Issue: | Original issue discount senior secured convertible notes
|
| Amount: | $5 million
|
| Coupon: | 0%
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| Price: | $4 million
|
| Yield: | 0%
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| Conversion price: | $0.10
|
| Warrants: | For 31 million shares
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| Warrant expiration: | Three years
|
| Warrant strike price: | $0.15 (first tranche), $0.25 (second tranche)
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| Pricing date: | Aug. 3
|
| Stock symbol: | TSX Venture: ANR.U
|
| Stock price: | $0.03 at close Aug. 3
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