Edward / Regulation S Floorless Convertible Debenture
In order to repay the MGTF Note (discussed below) in full, redeem certain outstanding convertible debentures prior to their conversion by the holders thereof into the Company's Common Stock, and to continue the expansion of the Company's refinery to enable the implementation of asphalt blending operations, on August 6, 1997, the Company issued an aggregate $6.4 million of two-year 8% Convertible Subordinated Debentures pursuant to Regulation S (the "Debentures") for net proceeds of $6,016,000. As a result, the Company's working capital improved to approximately $6 million as of August 11, 1997.
One half of the principal amount of the Debentures is convertible into shares of the Company's Common Stock on or after October 6, 1997, the remainder 30 days thereafter, all at a conversion price based on 85% of the average closing bid price of the Company's Common Stock for the five trading days prior to the date of conversion. The Company may redeem all or a portion of the Debentures at any time prior to conversion by paying 110% of the redemption amount to the holder on or before November 5, 1997, or 115% thereafter.
Uh, oh! Now where have I seen this before?
Razor |
