Imperial Resources (OTC:IPRC) today announced that on December 31, 2010 it entered into a Securities Purchase Agreement for a subscription for the Company’s common stock (“Agreement”) from a single investor (“Investor”). The stock is also under promotion via a third party today with an e-mail marketing campaign so, we will keep our eye on this one.The Investor subscribed for $500,000 worth of common stock in the Company (“First Subscription”) to be paid in cash within fourteen days of the Agreement. The issue was priced at approximately $0.68 per share reflecting a 10% discount to the Volume Weighted Average closing Price (“VWAP”) for the ten business days prior to the Agreement. 737,041 new shares of common stock will be issued, a minimal dilution of just 1.8% of the prior number of issued and outstanding shares.
The Company anticipates that the proceeds of the First Subscription will be applied to a significant investment in initial land leasing for its planned transformational Oklahoma Prospect, other low risk, quick hitting opportunities and for general working capital.
The Agreement also provides for further subscription at the Investor’s sole discretion until December 31, 2011, in tranches of a minimum of $500,000 and up to a maximum total of $2,500,000, to be priced at a 15% discount to VWAP or $0.68 per share, whichever is greater.
Robert Durbin, CEO, commented; “I am delighted that we have conducted this placing which allows us to immediately get on with our leasing acreage in our Oklahoma Prospect. The First Subscription is at an even better value for stockholders than the highly favourable debt conversion announced on December 13, 2010. This, I believe, reflects demand for Imperial’s model.”
To find out more about Imperial Resources, visit the website at www.imperialresourcesinc.com.
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