News Column

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

August 1, 2014

By a News Reporter-Staff News Editor at Energy Weekly News -- FX Energy, Inc. (NASDAQ: FXEN) (the "Company") announced that it has closed its 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.

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

The aggregate gross proceeds from the offering, before deducting underwriting discounts and commissions and offering expenses payable by the Company, were $20 million. The Company intends to use the net proceeds from the offering primarily to fund seismic and new drilling costs near its Tuchola discovery, which is located in the Edge license in north central Poland, where the Company holds 100% working interest in 730,000 acres.

Trading of the Series B Preferred Stock on the NASDAQ Global Select Market under the symbol "FXENP" 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. acted as joint book-running managers for the offering. Ladenburg Thalmann, a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE MKT: LTS), acted 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), acted as co-managers for the offering.

The offering was made pursuant to the Company's existing effective shelf registration statement, previously filed with the Securities and Exchange Commission ("SEC"). A final prospectus supplement related to the offering was filed with the SEC on July 14, 2014, and is available on the SEC's website located at or from MLV & Co. LLC at 1251 Avenue of the Americas, New York, NY 10020, Attn: Randy Billhardt; email:; telephone: (212) 542-5882.

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

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Source: Energy Weekly News

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