Torchlight Announces Private Placement of $4.5 Million in Unsecured Promissory Notes
Marketwired February 13, 2018
PLANO, TX--(February 13, 2018) - Torchlight Energy Resources, Inc. (TRCH) ("Torchlight" or "the Company"), today announced the closing of $4.5 million in unsecured 12% promissory notes through a private placement. The promissory notes bear interest at the rate of 12% per annum and mature on April 10, 2020, with interest payable monthly and a lump sum payment of outstanding principal due on maturity. The notes were issued at a purchase price of 96.27% of the principal amount, resulting in net proceeds of $4.33 million. In addition to the 12% cash interest, the notes will earn a common stock PIK at the rate of 2.5% annually.
The proceeds from the notes will be used for working capital and general corporate purposes, which includes, drilling capital, lease acquisition capital and repayment of prior debt.
"This financing will help to fund the drilling and stimulation of the University Founders A25-H, the first horizontal well currently underway in the Orogrande Basin" stated John Brda, Torchlight Energy's CEO. "We plan to complete and then stimulate the well and report initial results as soon as they are available. The vertical pilot hole has been completed, as well as all of the logs and cores. From a scientific standpoint, everything looks excellent. Of note, is the down hole pressure. During the drilling process, we are having to increase our mud weight and are doing so without losing circulation. This tells us that our target zone is not normally pressured, but rather somewhat over pressured. This bit of knowledge gained is more ammunition telling us we have excellent potential in the Orogrande."
