One-year convertible promissory notes sold to HFT Enterprises in deal
By Devika Patel
Knoxville, Tenn., April 1 – Lucas Energy, Inc. arranged a $600,000 private placement of 6% convertible promissory notes with HFT Enterprises, LLC on March 29, according to an 8-K filed Friday with the Securities and Exchange Commission. This deal is a replacement for an earlier convertibles offering that fell short of the planned $2.4 million in proceeds when investor Silver Star Oil Co. had difficulty providing the required funding.
HFT bought $300,000 of notes on March 29, with an effective settlement date of March 11, $150,000 of notes on March 29, with an effective settlement date of March 25 and will buy $150,000 of notes by April 30.
The notes mature in one year and are convertible into common shares at $1.50 per share. The conversion price is a 51.46% discount to the March 28 closing share price of $3.09. The notes may be prepaid.
HFT will also receive warrants for 124,285 common shares, each exercisable at $1.50. The strike price is also a 51.46% discount to the March 28 closing share price.
Houston-based Lucas is an oil and natural gas exploration and development company.
| Issuer: | Lucas Energy, Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $600,000
|
| Maturity: | One year
|
| Coupon: | 6%
|
| Conversion price: | $1.50
|
| Conversion discount: | 51.46%
|
| Call: | Yes
|
| Warrants: | For 124,285 shares
|
| Warrant strike price: | $1.50
|
| Investor: | HFT Enterprises, LLC
|
| Pricing date: | March 29
|
| Settlement dates: | March 11 (for $300,000), March 25 (for $150,000), April 30 (for $150,000)
|
| Stock symbol: | NYSE: LEI
|
| Stock price: | $3.09 at close March 24
|
| Market capitalization: | $4.48 million
|
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