By Sheri Kasprzak
Atlanta, June 8 - Whittier Energy Corp. said it plans to raise $49,999,980 in a private placement of convertible preferred stock.
The offering includes 833,333 shares of series A convertible preferred stock at $60.00 each sold to accredited investors.
The preferreds are also convertible into 30 shares at the holder's request and into 10 shares automatically after the company completes a one-for-three reverse stock split and the company is listed on the Nasdaq National Market.
If the company does not complete those conditions before Dec. 31, the investors will receive dividends at 8% annually. No dividends will be paid if the automatic conversion happens before Dec. 31.
The private placement is expected to close June 15 along with the company's acquisition of Rimco Production Co., Inc.
Houston-based Whittier is a natural gas exploration and production company.
| Issuer: | Whittier Energy Corp.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $49,999,980
|
| Shares: | 833,333
|
| Price: | $60.00
|
| Dividends: | 8% if automatic conversion does not occur before Dec. 31
|
| Conversion ratio: | Into 30 common shares at holder's request; into 10 common shares automatically after Whittier completes a one-for-three reverse stock split and is listed on the NasdaqNM
|
| Warrants: | No
|
| Pricing date: | June 7
|
| Settlement date: | June 15
|
| Stock price: | $3.00 at close June 7
|
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