By Sheri Kasprzak
New York, June 22 - Maverick Oil and Gas, Inc. settled a $10 million private placement of 9.75% secured convertible debentures.
The debentures, sold to a group of institutional investors, are due June 21, 2007 and are convertible into common shares at $0.9376 each.
The investors received warrants for 18.6 million shares, exercisable at $0.9376 each for five years.
Proceeds from the offering will fund exploration on the company's Fayetteville shale project and for the Barnett shale project.
Connected to the offering, the strike price of existing warrants priced at $1.50 and $2.00 each will be reduced to $0.9376 each due to anti-dilution provisions triggered by the deal. Those warrants will be exercisable for 9.3 million shares.
Fort Lauderdale, Fla.-based Maverick is an oil and natural gas exploration company.
| Issuer: | Maverick Oil and Gas, Inc.
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| Issue: | Secured convertible debentures
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| Amount: | $10 million
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| Maturity: | June 21, 2007
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| Coupon: | 9.75%
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| Price: | Par
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| Yield: | 9.75%
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| Conversion price: | $0.9376
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| Warrants: | For 18.6 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.9376
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| Settlement date: | June 21
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| Stock symbol: | OTCBB: MVOG
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| Stock price: | $0.99 at close June 21
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