Company grants another 559,998 units in exchange for liability release
By Devika Patel
Knoxville, Tenn., April 30 - Armada Oil, Inc. completed a second tranche of a private placement of units on April 26, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company raised $720,002 on Nov. 26. The second-tranche units were issued for no additional charge.
The company sold 800,002 units of one common share and one warrant at $0.90 per unit in the first tranche and 559,998 units for free in the second tranche.
Each warrant is exercisable at $0.75 until March 1, 2018. The warrants originally were exercisable at $1.25 for three years. The strike price is a 102.7% premium to the April 25 closing share price of $0.37.
The second-tranche units were issued in exchange for the investors agreeing to release the company and its affiliates from any claims, liabilities and causes of action arising from the subscription agreement for the units.
The oil and natural gas exploration and production company is based in Dallas.
Issuer: | Armada Oil, Inc.
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Issue: | Units of one common share and one warrant
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Amount: | $720,002
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Units: | 1.36 million
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Price: | $0.90 (for 800,002 units), $0.00 (for 559,998 units)
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Warrants: | One warrant per unit
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Warrant expiration: | March 1, 2018
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Warrant strike price: | $0.75
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Settlement dates: | Nov. 26 (for $720,002), April 26
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Stock symbol: | OTCBB: AOIL
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Stock price: | $0.37 at close April 25
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Market capitalization: | $31.12 million
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