(MENAFN- ProactiveInvestors - Australia) Sprint Energy (ASX: SPS) has raised A$443,400 in working capital securing convertible notes to strengthen its financial position.
The company secured convertible loans during June 2012, with an issue price of the lower of $0.02 or 80% of the five day volume weighted average price preceding the shareholders meeting.
The convertible loans attract an interest rate calculated daily at 6% and payable at six months intervals, and have a termination date of 26 June 2013.
Sprint Energy has previously executed a strategic agreement between Provencal Holdings and AM Securities to settle the only outstanding convertible note debt it holds.
Under the agreement, Provencal will acquire the A$2.5 million convertible loan from AM Securities and will immediately the loan into fully paid shares.
This will give Provencal 100 million shares priced at A$0.025 each, a 25% premium over the 30 day valued weighted average closing price of about A$0.018.
Importantly, this is a show of support as Sprint Energy rebuilds and grows, and it assists the company in completing the major capital restructuring and debt elimination program it is undertaking.
Sprint has implemented an aggressive debt reduction strategy, which has reduced debt by around $8 million since March 2012.
Subject to successful capital funding the company is aiming to obtain leases and re-establish gas reserves, review and complete its work programs on Padre Island, increase gas production and acquire other Gulf oil assets.
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