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," commentedStephen Hicks, Principal and CEO of Southridge.
The closing of the transactions is subject to the parties entering into definitive agreements, Texhomabecoming 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.
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 smallpublic 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.
Texhoma Energy, Inc.
24624 I-45 North, Suite 200?
Spring, TX 77386
Phone: 281 719 1995
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.