Lilis Energy Reports $20 Million Convertible Preferred Offering
June 15 2016 - 8:00AM
Lilis Energy, Inc. (OTCQB:LLEX) (the “Company”), a domestic oil and
gas exploration and production company currently focused in the
Denver-Julesburg (DJ) Basin, announced today that it has entered
into securities purchase agreements with qualified institutional
and certain accredited investors for the private placement of
20,000 shares of its Series B 6.0% Convertible Preferred Stock (the
“Preferred Stock”) for gross proceeds of $20 million. Dividends
shall be payable quarterly at 6.0% per annum, cumulative; payable
on January 1, April 1, July 1, and October 1, beginning on July 1,
2016 and shall be payable in cash or kind at the option of the
Company.
The Preferred Stock is convertible into the
Company’s common stock at a price of $0.11 per share. The Preferred
Stock may convert, subject to certain conditions, upon the receipt
of requisite stockholder approval. Additionally, for every two
shares of underlying common stock, holders will receive one
two-year warrant to purchase common stock at a price of $0.25. The
warrants may be called if the underlying shares of common stock
trades at price of $0.40 based on the VWAP for each of any 30
consecutive trading day period.
The Company expects to use the proceeds from the
offering to fund costs associated with closing its previously
announced merger with Brushy Resources, Inc., a company focused on
the Delaware Basin in West Texas, debt repayment, drilling and
development costs, fees, and working capital.
T.R. Winston & Company, LLC and KES7
Capital, Inc. acted as placement agents for the offering.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy any of the
securities described herein, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
Forward-Looking Statements
This press release may include or incorporate by
reference "forward-looking statements" as defined by the SEC,
including but not limited to statements regarding Lilis Energy's
expectations, beliefs, intentions or strategies regarding the
future. These statements are qualified by important factors that
could cause Lilis Energy's actual results to differ materially from
those reflected by the forward-looking statements. Such factors
include but are not limited to Lilis Energy's ability to finance
its continued exploration, drilling operations and working capital
needs, and the general risks associated with oil and gas
exploration and development, including those risks and factors
described from time to time in Lilis Energy's reports and
registration statements filed with the SEC.
Contact:MDC GROUPDavid
Castaneda (414) 351-9758
Lilis Energy (AMEX:LLEX)
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