American Natural Energy convertible could bring in up to $10 million

Exercised warrants will provide funds for future drilling

By Sahara Marte

New York, July 6 - American Natural Energy Corp. hopes to raise up to $10 million from its $3 million sale of unsecured convertible debentures, Michael Paulk, president, told Prospect News.

The convertible debentures sold with warrants can produce up to $10 million for the company if the warrants are exercised by the investors, he added.

As previously reported, the 12% convertibles are due in two years and convert to common stock at $0.10 per share.

The offering includes 100% warrant coverage. Each of the two-year warrants is exercisable at $0.23.

The company plans to allocate the entire $3 million from the initial sale of the convertibles to drilling and establishing wells. Any future raised funds will be used to continue the drilling projects, Paulk said.

"We had the assets," Paulk stated. "There's no reason to wait. We just needed to fund it."

American Natural Energy expects to see drilling progress in the next several months

Tulsa, Okla.-based American Natural is an oil and natural gas exploration company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.