American Natural Energy (OTCBB: ANRUF) (TSXV: ANR.U) Announces Financing Transaction
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Tulsa, Oklahoma - (Newsfile Corp. - July 7, 2014) (www.investorideas.com newswire) American Natural Energy Corporation (OTCBB: ANRUF) (TSXV: ANR.U) ("ANEC") announced the completion of a financing transaction with Hillair Capital Investments, LP ("Hillair") in which ANEC and Hillair agreed to amend the Second Replacement, Amended and Restated Senior Secured Redeemable Debenture ("Amended Debenture"), which along with the Security Agreement, Mortgage and Other Security Documents were assigned by TCA Global Credit Master Fund LP to Hillair. The Amended Debenture has a current principal balance of $1.753 million. Additionally, Hillair purchased an 8% Original Issue Discount Senior Secured Convertible Debenture ("OID Debenture") in the principal amount of $835,899 convertible at $0.10 per share.
The interest rate of the Amended Debenture is being adjusted to 16%, significantly reducing the costs to ANEC. The Amended Debenture and OID Debenture will mature on January 1, 2016 with interest payable quarterly beginning January 1, 2015 and principal paid quarterly beginning March 1, 2015.
ANEC also issued to Hillair 28,000,000 Series A Warrants exercisable for 5 years at $0.12 per share and 19,641,002 Series B Warrants exercisable for 2 years at $0.10 per share. The financing also provides for follow-on financing with similar terms in the future.
ANEC also announced that William Yuan has resigned from the board of directors and that the board has appointed John Coughlon to the board.
ANEC also reached agreement with Palo Verde Acquisitions LLC to extend the maturity of its 12% convertible debenture in the amount of $2 million and its 12% convertible debenture in the amount of $1 million until January 2, 2016 with all accrued and unpaid interest to date being added to the outstanding principal amount. The conversion price of $0.10 per share remains unchanged. Additionally, the expiration date of warrants held by Palo Verde was extended to January 2, 2018 and the exercise price reduced to $0.12 per share.
ANEC is a Tulsa, Oklahoma based independent exploration and production company with operations in St. Charles Parish, Louisiana. For further information please contact Michael Paulk, CEO at 918-481-1440 or Steven P. Ensz, CFO at 281-367-5588.
This Press Release may contain statements which constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995, including statements regarding the plans, intentions, beliefs and current expectations of ANEC, its directors, or its officers with respect to the future business, well drilling and operating activities and performance of ANEC. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The actual results and outcome of events may differ materially from those in the forward-looking statements as a result of various factors. The levels of and fluctuations in the prices for natural gas and oil and the demand for those commodities, the outcome of ANEC's development and exploration activities, including the success of its current and proposed well drilling activities and the availability of capital to pursue those activities could affect ANEC and its future prospects. Important additional factors that could cause such differences are described in ANEC's periodic reports and other filings made with the Securities and Exchange Commission and may be viewed at the Commission's Website at http://www.sec.gov.
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