HDY: 8-K out
HDY is a YAGI client whose share price hasn't been decimated in the 20 mos. of financial dealings; they are only down about 43%.)
http://www.sec.gov/Archives/edgar/data/937136/000114036108003387/form8k.htm
These guys are in for double the fun, getting money from YAGI and Dutchess.
Excerpts:
On February 6, 2008, we and two of our wholly-owned subsidiaries
(Trendsetter Production Company and HYD Resources Corporation {the
“Subsidiaries”}) entered into a series of agreements (the
“Transactions”) with YA Global Investments, L.P. (“Yorkville”).
The nature of the Transactions is a private placement of
securities. The role of the Subsidiaries in these Transactions was
to provide their assets as security (i.e., secured collateral) for
a series of three loans (the “Loans” or “Notes”) to us from
Yorkville. The Loans are non-convertible unless we default on the
Transactions.
The interest rate on the Loans is 20%.
(As if 20% wasn't enough, you just have to love all the up-front fees/payments ... what is the actual effective interest rate?)
Gross Proceeds:
From YA Global Investments, L.P.
$ 910,526
Less:
Montioring Fee deposited in Escrrow Account
$ (80,000)
Structuring Fee to Yorkville Advisors LLC
$ (30,000)
Due Diligence Fee to Yorkville Advisors LLC
$ (5,000)
90 Days of Interest (20%) to Yorkville Advisors LLC
$ (45,526)
Net Proceeds:
Net Proceeds Payable to Hyperdynamics Corporation
$ 750,000
===================================================
The transaction terms include a restriction on our using our
equity line of credit (“ELOC”) that we have with Dutchess Private
Equities Fund, II, LP. While the Loan remains outstanding, we
may use the ELOC for aggregate gross proceeds of up to $500,000
per 60 day period, provided however, if (a) no Event of Loan
Default has occurred, (b) the Closing Bid Price of our Common
Stock is above $4.00 for five consecutive Trading Days, and (c)
the Closing Bid Price remains above $4.00 on the day an ELOC put
is made, then we may make up to two puts under the ELOC per 30
day period for aggregate gross proceeds of the greater of: (i)
$500,000 for the two puts, or, (ii) no more than the amount
determined under the ELOC volume matrix formula set forth in
Section 2(b) of the Dutchess Equity Line agreement (the “Dutchess
Investment Agreement”) for each of the two puts. The Dutchess
Investment Agreement will expire according to its own terms in
February 2009.
