To: SliderOnTheBlack who wrote (114 ) 1/4/1999 3:49:00 PM From: Mark Adams Respond to
I like the insider buying on EGAS- but how did they rack up $147,583 in interest expense during the last quarter? biz.yahoo.com In August 1998, the Company initiated the private placement of up to 700,000 shares of 9% redeemable convertible preferred stock (the "Preferred Stock") at an issue price of $7.50 per share. In November 1998, the private placement was amended to offer up to 800,000 shares of the Preferred Stock at an issue price of $6.50 per share, subject to an adjustment of the issue price as of termination of the offering (no later than December 31, 1998). See Part II, Item 2, for further discussion of the Preferred Stock offering. As of November 14, 1998, the Company has raised approximately $670,220, net of commission expense, from the sale of Preferred Stock. sec.yahoo.com Total liabilities increased $5,836,332 or 268.4% from December 31, 1997 to September 30, 1998, due primarily to an increase in long-term debt of $6,068,395. See "LIQUIDITY & CAPITAL RESOURCES" for further discussion. This increase in long-term debt was used primarily to fund the drilling, development, and enhancement efforts on Company oil and gas properties. Current liabilities decreased $232,063 to $1,153,869 or 16.7% from December 31, 1997 to September 30, 1998 primarily due to a decrease in accounts payable and accrued expenses of $234,124 to $1,122,624 at September 30, 1998, a decrease of 17.3%.
