Lucas Energy, Inc. (NYSE: LEI) revealed it struck a series of deals with institutional investors enabling them to get $10 million of equity capital. The initial investment would be redeemable convertible subordinated debenture that will be converted into common stock at a price of $3.25 a share, its press statement said.
Lucas Energy said at the closing, this placement would offer $500,000 of funding immediately while the remaining $4.5 million will come through the exercise of the warrant on certain closing conditions. In short, the company will get $10 million from the current commitments. An additional $5 million would be made available with the exercise of warrant option after mutual consent, according to the company.
The oil and gas firm's CEO Anthony Schnur said, "This placement demonstrates confidence in the future of Lucas Energy as we progress towards closing on the Segundo Resources asset purchase. Having received this commitment establishes some certainty that we can initiate growth and development activities upon closing the acquisition."
Shares of the company ended Wednesday's session with a 4.63 percent gain.
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