Deal also includes 50% warrant coverage; preferreds have 6% dividends
By Devika Patel
Knoxville, Tenn., June 15 – Lilis Energy Inc. said it plans a $20 million private placement of series B 6% convertible preferred stock. T.R. Winston & Co., LLC and KES7 Capital, Inc. are the agents.
The company will sell 20,000 preferreds at $1,000 apiece.
The preferreds have a conversion price of $0.11 per share, which is a 10% premium to the June 14 closing share price of $0.10.
The preferreds were sold with 50% warrant coverage. The warrants are each exercisable at $0.25 for two years. The strike price is a 150% premium to the June 14 closing share price.
Proceeds will be used for the company’s planned merger with Brushy Resources, Inc., debt repayment, drilling and development and working capital.
The oil and gas company is based in Denver.
| Issuer: | Lilis Energy Inc.
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| Issue: | Series B convertible preferred stock
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| Amount: | $20 million
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| Preferreds: | 20,000
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| Price: | $1,000
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| Dividends: | 6%
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| Conversion price: | $0.11
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| Warrants: | 50% coverage
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| Warrant expiration: | Two years
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| Warrant strike price: | $0.25
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| Agents: | T.R. Winston & Co., LLC and KES7 Capital, Inc.
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| Pricing date: | June 15
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| Stock symbol: | Nasdaq: LLEX
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| Stock price: | $0.10 at close June 14
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| Market capitalization: | $3.48 million
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