Business
Falcon Oil & Gas Ltd. announces terms of offering
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/ (TSXV ...
About this update from Falcon Oil & Gas Ltd.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.\nNEWSWIRE SERVICES/\n\n\n(TSXV Symbol: FO)\n\n\nDENVER, June 12 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon" the\n"Company") today announces that it has entered into a definitive agency\nagreement with Salman Partners Inc. to sell, on a commercially reasonable\nefforts basis, up to $55,000,000 of units (the "Units"), at an offering price\nof $1,000 per Unit (the "Offering"). Each Unit consists of $900 worth of 11%\nconvertible unsecured debentures (each a "Debenture") in the principal amount\nof $1,000 due on the date that is four years following the closing of the\nOffering (the "Maturity Date") and 250 common shares in the capital of the\nCompany. The Debentures will be issued in $1,000 principal amount increments\nonly and in no circumstances will the principal amount of any Debenture issued\nbe less than $1,000.\n\n\nEach Debenture will be convertible into common shares of the Company at\nthe option of the Debentureholder at any time prior to the close of business\non the earlier of the Maturity Date and the business day immediately preceding\nthe date fixed by the Company for redemption of the Debentures at a conversion\nprice of $0.60 per share, subject to adjustment in certain events (the\n"Conversion Price"). If during the two year period following the closing the\nvolume weighted average trading price of the common shares of the Company is\n$0.85 or greater for 20 consecutive trading days, the Debentures will\nautomatically be converted at the Conversion Price and Debentureholders will\nbe entitled to receive accrued and unpaid interest, in cash, to the end of the\nfirst 12 month period or 24 month period after the closing, as the case may\nbe. To ensure that the Company is able to meet its interest payment\nobligations to July 1, 2010 and to otherwise assist the Company in meeting its\nobligations to the Debentureholders, an amount equal to the first two interest\npayments payable under the Debentures will be deposited in escrow at closing.\n\n\nThe TSX Venture Exchange (the "TSXV") has conditionally accepted for\nfiling the Company's short form prospectus qualifying the distribution of the\nUnits. Listing of the Debentures is subject to Falcon fulfill...