News Column

FX Energy, Inc. Announces Pricing of Public Offering of Series B Preferred Stock

July 25, 2014

By a News Reporter-Staff News Editor at Energy Weekly News -- FX Energy, Inc. (NASDAQ: FXEN) (the "Company") announced that it has priced an underwritten public offering of 800,000 shares of its 9.25% Series B Cumulative Convertible Preferred Stock (the "Series B Preferred Stock") at a public offering price of $25.00 per share. Holders of Series B Preferred Stock may convert their shares, in whole or in part, into shares of the Company's common stock at a conversion price of $5.00 per share. The Company may cause conversion of the Series B Preferred Stock if the trading price of its common stock exceeds $6.00 for 20 trading days in any consecutive 30-trading-day period.

Gross proceeds to the Company are expected to be approximately $20 million before deducting the underwriting discount and other estimated offering expenses payable by the Company. The offering is expected to close on or about July 17, 2014, subject to the satisfaction of customary closing conditions.

In connection with the offering, the Company intends to grant the underwriters a 30-day option to purchase additional shares of Series B Preferred Stock to cover over-allotments, if any.

The Company intends to use the net proceeds from the offering primarily to fund seismic and new drilling costs near its Tuchola prospect, which is located in the Edge license in north central Poland, where the Company holds 100% working interest in 730,000 acres.

The Company has filed an application to list the shares of Series B Preferred Stock on the NASDAQ Global Select Market under the symbol "FXENP." If approved by NASDAQ, trading of the Series B Preferred Stock on the NASDAQ is expected to begin within 30 days after the date of initial issuance of the Series B Preferred Stock. MLV & Co. LLC and Euro Pacific Capital, Inc. are acting as joint book-running managers for the offering. Ladenburg Thalmann, a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE MKT: LTS), is acting as lead manager, and I-Bankers Securities, Inc., Maxim Group LLC, and National Securities Corporation, a wholly owned subsidiary of National Holdings, Inc. (OTCBB: NHLD), are acting as co-managers for the offering.

Keywords for this news article include: FX Energy Inc., Investment and Finance.

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Source: Energy Weekly News

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