24 Sept 2008capital raising announcement▼ BadMajor
On September 19, 2008 the company sold Marquis a $7,000,000 senior secured note for $6,750,000 gross, at 12.5% interest payable quarterly in cash and maturing September 2009. Marquis can convert up to 50% of the principal repaid into shares at $4.00 each. The note ranks ahead of Longview's roughly $32.4 million of existing notes, and Marquis also received a 1.0% overriding royalty on all current and future interests. The company issued 403,499 shares to retire $637,614.51 of demand notes plus interest. The note carries covenants, including a minimum daily production level, and breach lets the holder demand immediate repayment. Proceeds are earmarked for drilling and recompletion work in south and central Texas, including the Matagorda Bay and Giddings projects.