SPRING, Texas, July 1, 2014 /PRNewswire/ -- Texhoma Energy Inc.
("Texhoma") (OTC Pink: TXHE)
announced that it has signed a letter of intent (LOI) with
Southridge Partners II, LP, ("Southridge"), an institutional
investor, outlining terms for an equity purchase agreement (EPA) in
the amount of $5 million, which if
funded, will create significant growth capital to Texhoma.
Under terms of the LOI, upon execution of the EPA, and subject
to certain closing conditions (including those described below),
Texhoma will have the right, not
the obligation to sell, from time to time, up to $5 million of its common stock to Southridge at a
discount to the then trading price of its common stock, under terms
deemed favorable by management, by submitting a Draw Down Notice in
an amount that the company determines.
Prior, Texhoma will need to
have obtained effectiveness of a Form S-1 registration statement
with the SEC, which process it plans to initiate in 2014, funding
permitting.
"We are pleased to be partnering with Southridge, an
institutional investor with a long, reliable history of providing
capital to the small cap space. We believe that the terms of this
agreement are favorable to our shareholders and provide
Texhoma with the best opportunity
to execute its business plan and deliver long-term shareholder
value and are thankful for the confidence Southridge has shown in
Texhoma," commented Gilbert Steedley, CEO of Texhoma.
"Texhoma Energy, Inc., with its recent collaboration agreements
and its progress in improving its debt to asset ratio, provided us
with the confidence necessary to commit to provide growth capital.
We are excited to partner with Texhoma and its seasoned management as they
execute their strategy," commented Stephen
Hicks, Principal and CEO of Southridge.
The closing of the transactions is subject to the parties
entering into definitive agreements, Texhoma becoming a fully-reporting company and
filing a registration statement to register the shares issuable in
connection with the EPA, among other things, the timing and final
terms and conditions of which are currently uncertain and may not
be completed.
About Southridge
Southridge is a diversified
financial holdings company that specializes in funding and advising
small cap and growth companies in the public markets. Since 1996,
the structured finance team at Southridge has made direct
investments of over $1.75 Billion in
over 300 companies globally. Southridge advises small public
companies on a wide variety of corporate issues from the process of
becoming a public company, to individualized financing techniques,
to optimized balance sheet management. For further information
about Southridge, visit www.southridge.com.
About Texhoma Energy, Inc.
Texhoma is engaged in the acquisition,
exploration and production of oil and natural gas. The company
seeks to replenish its oil/gas holdings in accordance with its
oil/gas tradition as well as other non-oil/gas opportunities as
they arise. For further information about Texhoma, visit www.texhomaenergy.com.
Contact information
Texhoma Energy, Inc.
24624 I-45 North, Suite 200
Spring, TX 77386
Phone: 281 719 1995
Email: contact@texhomaenergy.com
This press release may contain forward-looking statements,
including information about management's view of Texhoma's future expectations, plans and
prospects. When used in the preceding discussion, the words
"believes," "expects," "intends," or "may," and similar conditional
expressions are intended to identify forward-looking statements.
Any statements made in this news release, including those regarding
the LOI/EPA, Texhoma's plans to
become fully-reporting, file a registration statement and raise
funds pursuant to the LOI/EPA, other than those of historical fact,
about an action, event or development, are forward-looking
statements. These statements involve known and unknown risks,
uncertainties and other factors, which may cause the results of
Texhoma, its divisions and
concepts to be materially different than those expressed or implied
in such statements. The forward-looking statements included in this
press release are made only as of the date hereof. Texhoma cannot guarantee future results,
levels of activity, performance or achievements. Do not place undue
reliance on these forward-looking statements. Texhoma undertakes no obligation to update
these statements, except as required by law, and takes no
obligation to update or correct information prepared by third
parties that are not paid for by Texhoma.
SOURCE Texhoma Energy, Inc.