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Rhino Resource Partners LP Announces Execution of Securities Purchase Agreement With Royal Energy Resources, Inc.
Rhino Resource Partners LP Announces Execution of Securities Purchase Agreement With Royal Energy Resources, Inc..
About this update from Royal Energy Resources Inc
[{"type":"text","content":"\n \n \n Rhino Resource Partners LP Announces Execution of Securities Purchase Agreement With Royal Energy Resources, Inc.\n \n \nRhino Resource Partners LP Announces Execution of Securities Purchase Agreement With Royal Energy Resources, Inc.\n \n LEXINGTON, KY--(Marketwired - Mar 23, 2016) -  Rhino Resource Partners LP (OTCQB: RHNO) (\"Rhino\" or the \"Partnership\") announced today that Rhino and Royal Energy Resources, Inc. (OTCQB: ROYE) (\"Royal\") entered into a securities purchase agreement (the \"Securities Purchase Agreement\") pursuant to which the Partnership issued 60,000,000 common units in the Partnership to Royal in a private placement in exchange for which Royal paid the Partnership $2.0 million in cash and delivered a promissory note payable to the Partnership in the amount of $7.0 million. The promissory note is payable in three installments: (i) $3.0 million on July 31, 2016; (ii) $2.0 million on or before September 30, 2016 and (iii) $2.0 million on or before December 31, 2016. In the event the disinterested members of the board of directors of Rhino GP LLC, the general partner of Rhino, determine that the Partnership does not need the capital that would be provided by either or both installments set forth in (ii) and (iii) above, in each case, the Partnership has the option to rescind Royal's purchase of 13,333,333 common units and the applicable installment will not be payable (each, a \"Rescission Right\"). If the Partnership fails to exercise a Rescission Right, in each case, the Partnership has the option to repurchase 13,333,333 common units at $0.30 per common unit from Royal (each, a \"Repurchase Option\"). The Repurchase Options terminate on December 31, 2017. Royal's obligation to pay any installment of the promissory note is subject to certain conditions, including that the Partnership has entered into an agreement to extend its Amended and Restated Credit Agreement, as amended, to a date no sooner than December 31, 2017. \n Including these newly issued common units, Royal owns 66.8 million of Rhino's 76.9 million issued and outstanding common units. The Securities Purchase Agreement was structured to facilitate the requirements of Rhino's senior secured lenders in their provision of requested amendments and extensions of the Partnership's Amended and Restate...