The Company has entered into purchase agreements with certain accredited investors for private placement totaling 7.65 million units at a purchase price of $1.00 per unit for gross proceeds of $7.65 million. Included in the units are warrants for an additional 7.65 million common shares exercisable at $1.25 per share. The warrants are exercisable for a term the earlier of twelve months after registration effectiveness, or 18 months. The Company will file a registration statement with the Securities and Exchange Commission covering the resale of shares of common stock sold in the private placement or issuable upon exercise of the warrants.
Agent success fees relating to the offer are payable in connection with the private placement in the amount of 5% of the gross proceeds payable in cash plus 10% of the gross units issued payable in restricted common shares that carry piggy back registration rights.
Lexington Resources, Inc. is a junior integrated natural resource exploration company engaged in the acquisition and development of oil and natural gas properties in the United States. Its current operational focus is on gas development initiatives in the Arkoma Basin, Oklahoma and the Dallas Fort Worth Basin in Texas.
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