Hyperdynamics announced the retirement of its remaining long-term debt after completion of its previously announced registered direct offering of 7.2 million shares of common stock and warrants to purchase 3.25 million shares of common stock which provided $6.5 million in gross proceeds. Of this amount, $525,000 has been used to retire all of the Company's outstanding convertible debentures. As a result, Hyperdynamics has no long-term debt remaining on its balance sheet. As previously disclosed, the balance of the offering proceeds will be used to fund the Company's ongoing exploration activities in Guinea, for the payment of certain short-term debt and for working capital and general corporate purposes.
"The retirement of the remaining portion of our convertible debenture with Enable Growth Partners L.P. eliminates the debenture's restrictive debt covenants and extinguishes the dilutive effect of converting the debenture into common shares," said Ray Leonard, Hyperdynamics' President and Chief Executive Officer.
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