Blue Dolphin Stock Purchase May Lead to Acquisitions, Expansions



Blue Dolphin Energy has entered into a stock purchase agreement with certain accredited investors for the private placement of 1,171,432 shares of the company's common stock at a purchase price of $1.75 per share.

The sale of the shares closed on March 8. The net proceeds from the offering after the payment of commissions and expenses will be approximately $2,025,000. The company expects to use the proceeds for possible acquisitions and planned expansions of its facilities, as well as for working capital needs and general corporate purposes.

In conjunction with a May 27, 2005, placement agency agreement with Starlight Investments, Blue Dolphin also issued warrants to purchase an aggregate of 8,572 shares of common stock. The warrants vest immediately upon issuance and the exercise price per share varies based on the following conditions:

  • until the later of the registration of the warrants or one year from the issue date, 110 percent of the purchase price per share in the offering
  • from the later of (x) the registration of the warrants and (y) one year, until two years from the issue date, 120 percent of the purchase price per share in the offering
  • after the expiration of two years from the issue date of the warrants, 130 percent of the purchase price per share in the offering.

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