Hyperdynamics Implements $6 Million Financing Deal with Cornell Capital
Hyperdynamics Corporation (AMEX: HDY) has implemented a new financing with Cornell Capital Partners, LP. The company has issued the first of three fixed floor convertible debentures and has received $1.8MM in net proceeds. On Friday, June 23, 2006, form 8K was filed with the Securities and Exchange Commission through which all the details of the financing are readily available for review. There are commitments for an additional $2MM upon filing of a new registration statement and $2MM upon effectiveness of the registration statement, bringing the total base financing package to $6MM. Additionally, investor warrants are included that have strike prices ranging from $2.50 to $4.00 per share. Exercise of these warrants would provide an additional $6.6MM of capital.
Kent Watts, Hyperdynamics' Chief Executive stated, "This financing will easily support and enhance our operations currently and it positions us with the ability to swiftly mobilize our anticipated drilling program offshore Guinea. Together with equity financing already in place, we have ready access to as much as $25MM in cash liquidity. On top of this, the exercise of our outstanding warrants would effectively provide approximately $15MM of additional equity financing. Thus, without having to consummate any additional financing, we currently have a financial strategy in place with the potential to obtain up to $40MM of new capital."
Hyperdynamics Corporation provides energy for the future by exploring and developing new sources of energy worldwide. The company's internationally active oil and gas subsidiary, SCS Corporation, owns rights to explore and exploit significant acreage offshore the Republic of Guinea, West Africa. HYD Resources Corporation focuses on domestic production in proven areas.
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- Hyperdynamics Says Tullow Claims Force Majeure in Offshore Guinea (Mar 12)
- Tullow Declares Force Majeure On Guinea Project After Partner Probe (Mar 12)