Company sells 4,028,000 shares at $0.25 apiece to fund debt retirement
By Devika Patel
Knoxville, Tenn., Nov. 23 - Gateway Energy Corp. completed a private placement of stock on Nov. 23, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The company sold 4,028,000 common shares at $0.25 per share for $1.01 million. The price per share is identical to the Nov. 22 closing share price of $0.25.
The company will use the proceeds to retire debt under its credit facility with Meridian Bank Texas, NA, for acquisitions and for general working capital.
"We tried to strike the difficult balance between raising the minimum amount of equity capital necessary to fund our near-term growth and ownership dilution at a pricing discount to the tangible book value of our equity," president and chief executive officer Fred Pevow said in a press release.
"We are very pleased however that both existing and new investors expressed confidence in the company," he said. "This small private placement represents the most significant infusion of new equity capital into the company since 1997."
The Houston-based company owns and operates natural gas gathering, transportation and distribution systems in Texas, Texas state waters and in federal waters of the Gulf of Mexico off the Texas and Louisiana coasts.
| Issuer: | Gateway Energy Corp.
|
| Issue: | Common stock
|
| Amount: | $1,007,000
|
| Shares: | 4,028,000
|
| Price: | $0.25
|
| Warrants: | No
|
| Settlement date: | Nov. 23
|
| Stock symbol: | OTCBB: GNRG
|
| Stock price: | $0.25 at close Nov. 22
|
| Market capitalization: | $4.85 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
