By Sheri Kasprzak
Atlanta, April 19 - Touchstone Resources USA Inc. said it has closed private placements for $8,683,432.
The company sold 711,063 units at $11.00 each.
The units include one share of series A convertible preferred stock and a warrant for five common shares.
Each preferred is convertible into 10 common shares. The preferreds pay dividends of 8% annually.
The warrants are exercisable at $1.50 each for three years.
The company also closed an offering of 410,352 units at $2.10 each.
Those units include two common shares and a warrant for an additional share. The warrants are exercisable at $2.00 each for three years.
A portion of the offerings was placed through Legend Merchant Group Inc.
Based in Bala Cynwyd, Pa., Touchstone is an oil and natural gas exploration company. The proceeds will be used to develop the company's drilling programs across its portfolio. The remainder will be used for working capital and general corporate purposes, which may include the acquisition of additional oil and gas interests.
First issue
| Issuer: | Touchstone Resources USA Inc.
|
| Issue: | Units of one share of series A convertible preferred stock and a warrant for five shares
|
| Amount: | $7,821,693
|
| Units: | 711,063
|
| Price: | $11.00
|
| Dividends: | 8%
|
| Conversion ratio: | Each preferred into 10 common shares
|
| Warrants: | One warrant for five shares per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $1.50
|
| Placement agent: | Legend Merchant Group Inc.
|
| Settlement date: | April 19
|
| Stock price: | $1.14 at close April 19
|
|
|
| Second issue
|
| Issuer: | Touchstone Resources USA Inc.
|
| Issue: | Units of two shares and one warrant
|
| Amount: | $861,739
|
| Units: | 410,352
|
| Price: | $2.10
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $2.00
|
| Placement agent: | Legend Merchant Group Inc.
|
| Settlement date: | April 19
|
| Stock price: | $1.14 at close April 19
|
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