HyperDynamics Corporation reports that since January 1, 2004, the company has raised $5,545,614 by agreeing to issue 7,172,090 restricted 144 shares to private accredited investors. The Company has filed form 8K with the Securities and Exchange Commission disclosing this material event. These restricted shares have no registration rights and can only be sold under Rule 144 after a one-year holding period. The shares were sold at a discount to market ranging approximately from 30 to 50 percent discount on the date of commitment. The private subscriptions also included 3,105,900 warrants for restricted common stock with an option price of $2.00 per share. Exercise of these warrants would produce $6,211,800 in additional capital for the company.
Kent Watts, Chairman and CEO, said, "These new funds dramatically enhance our financial position. I believe that one result will be the elimination of the 'going concern' paragraph when the next audit is completed." He further stated, "Having these funds available gives us greater operating options and flexibility as we move forward."