PetroSun Announces $24.0 Million Recapitalization
• Company Receives $15.0 Million Equity Commitment
• Recapitalization Also Equitizes $9.1 Million of Existing Debt & Accrued Interest
• Net Proceeds will Primarily Fund Lithium Projects and Helium Development
A "Strategic Investor" has executed a $15 million stock purchase agreement.
Additionally, a debt conversion agreement was executed with "Certain Strategic Investors and Lenders and immediately equitizes approximately 85% of the Company's long-term debt.
Gordon LeBlanc, Jr., the Chairman and President of PetroSun, Inc., said, "This Stock Purchase Agreement represents a tremendous vote of confidence in the Company's core lithium and helium projects. The proceeds from the stock sale will finance the Company's continuing acquisition and development of its mining concessions in northern Mexico, which we believe hold significant, economic quantities of lithium and other precious elements, in addition to zeolite clays for agricultural uses. The transaction will also fund near-term drilling and completion activity to develop helium production in the Holbrook Basin of Arizona and helium and natural gas production in the Golden Eagle Field of Utah."
Gordon LeBlanc, Jr. commented, "This equitization of existing debt is another key step in the Company's development of its existing projects. The equitized debt consisted entirely of loans from various existing investors in PetroSun. As such, the equitization reflects their continued confidence in the value of the Company's core projects. I remain very appreciative their continued commitment and support."
It does appear the holders of the long-term debt would rather own stock in PetroSun than be paid back their $ 9.1 million dollar loans to the company. This also improves the financial statements as we look forward to more investors and analytical review of the companies results and prospects by potential institutional and commercial investors with uplisting.
More good news and assurance that important partners of the company are fully supporting the efforts to complete projects and generate revenue. This is looking safer and more substantial than before.
