CrossPoint Announces Merger Deal
CrossPoint Energy, LLC on Tuesday said that it has completed two transactions that will facilitate the company's drilling and development plans and simultaneously effectuate a merger into a publicly traded corporation.
The merger is expected to become effective in early fall, subject to requisite regulatory approvals, and the combined entity will operate under the name of CrossPoint Energy Company. The company closed a private placement of common stock combined with convertible debt for total gross proceeds of $15 million.
The proceeds from the offering will be used for the company's continued drilling and development within three primary asset areas in east and southeast Texas. Dan Collins, President and Chief Executive Officer of CrossPoint Energy, LLC stated, "These transactions, coupled with our recent project successes, will provide the company with a platform for continued reserve growth."
CrossPoint Energy, LLC is headquartered in Frisco, Texas. The company business strategy includes the drilling and development of high-reserve potential projects with multi-pay targets in east and southeast Texas. CrossPoint Energy was formed in the fourth quarter of 2004 through the acquisition of Dallas Operating Corp. Dallas Operating Corp. is presently a subsidiary of CrossPoint.