Published on 10/11/2005 in the Prospect News PIPE Daily.
New Issue: KFx raises $3 million from private placement of stock
By Sheri Kasprzak
New York, Oct. 11 - KFx Inc. said it has secured $3 million from the sale of shares to Arch Coal, Inc. as part of a surface access and use license agreement.
Arch Coal bought 191,205 shares at $15.69 each and also received warrants for a total of 2,550,613 shares.
The warrants are exercisable in four tranches. In the first tranche, Arch Coal may buy up to 446,144 shares at $15.69 each for 30 days after completion of the KFx Fort Union K-FuelT plant. In the second tranche, the investor may purchase up to 602,773 shares at $16.59 each for 30 days after the execution of operative agreements between it and KFx. In the third tranche, Arch Coal may buy up to 535,045 shares at $18.59 each for 30 days after KFx gives notice that all necessary permits to build and operate its KFx Fort Union K-FuelT plant have been received and in the fourth tranche, the investor may buy up to 966,651 shares at $20.69 each for one year after the plant is completed.
KFx and Arch Coal have entered into an agreement that will allow KFx access to Arch Coal's Creek Mine property in Wyoming for exploratory core drilling and geotechnical surveys. Based upon those surveys, KFx will evaluate the feasibility of constructing the 8 million-ton-per-year K-FuelT coal plant.
Based in Denver, KFx is a coal-mining company.
| Issuer: | KFx Inc.
|
| Issue: | Stock
|
| Amount: | $3 million
|
| Shares: | 191,205
|
| Price: | $15.69
|
| Warrants: | For 2,550,613 shares
|
| Warrant strike price: | $15.69 for 446,144 shares, $16.59 for 602,773 shares, $18.59 for 535,045 shares, $20.69 for 966,651 shares
|
| Warrant expiration: | 30 days after completion of plant for 446,144 shares; 30 days after execution of operative agreements between KFx and Arch Coal for 602,773 shares; 30 days after notice that all permits to build and operate plan have been granted for 535,045 shares; one year after plant's completion for 996,651 shares
|
| Investor: | Arch Coal, Inc.
|
| Settlement date: | Oct. 5
|
| Stock price: | $15.25 at close Oct. 5
|
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