Offering is expected to finance company's working capital requirements
By Devika Patel
Knoxville, Tenn., Sept. 7 - Baron Energy, Inc. settled a $99,999 private placement of convertible promissory notes on Feb. 2, according to an 8-K filed Friday with the Securities and Exchange Commission. The investors, Roger A. Tichenor, Siesta Fiesta Holdings, LLC and Randall Oser, each invested $33,333.
The 8% notes are due Feb. 2, 2013. They may be prepaid at 110 and may be put if the company at least $1 million in an equity financing. The notes may be converted into common stock at a conversion price equal to the higher of 80% of the average of the three lowest daily closing prices of the stock during the five-day period following the conversion notice and $0.005.
Proceeds will be used for working capital requirements.
The oil and gas explorer is based in Midland, Texas.
| Issuer: | Baron Energy, Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $99,999
|
| Maturity: | Feb. 2, 2013
|
| Coupon: | 8%
|
| Conversion price: | Higher of 80% of the average of the three lowest daily closing prices of the stock during the five-day period following the conversion notice and $0.005
|
| Call: | At 110
|
| Put: | Yes
|
| Warrants: | No
|
| Investors: | Roger A. Tichenor (for $33,333), Siesta Fiesta Holdings, LLC (for $33,333) and Randall Oser (for $33,333)
|
| Settlement date: | Feb. 2
|
| Stock symbol: | OTCBB: BROE
|
| Stock price: | $0.04 at close Feb. 1
|
| Market capitalization: | $3.82 million
|
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