volume up today...lets see another cleansing notice come out this afternoon.
i think they will all get converted...but it doenst seem like the note holder has the cash. I think they will sell the off market to an insto. I doubt they will be able to sell them on market and i don't think they will trash the price just to sell on market.
The main reason why i think they will be converted...the free options they get upon converting the note...exercise price 20cents...duration 3 years. So not only are they in the money, they get a free option as well.
Details below
Convertible notes have been issued as a source of long-term finance. Following passing of resolution 7 at the Company’s Annual General Meeting held on 31 May 2012, the Group raised USD $7.5 million through the issuance of 7.5 million Convertible Notes and 7.5 million free attaching options for every two (2) shares issuable on conversion of the notes into shares. The options are unlisted and have an exercise price of AUD $0.20 and exercisable within three (3) years from the date of issue. Interest payable on each Note will compound and accrue annually at 10% per annum. Interest is payable quarterly in arrears commencing on 30 June 2012.
The Notes are payable in full two (2) years from the date the Notes are issued. The Notes are convertible into ordinary shares of the Company at the option of the holder at any time up to 31 May 2014. The conversion price of each note is in USD and the equivalent of AUD $0.15 converted into USD using the Reserve Bank of Australia published exchange rate on the day the Note is issued. The convertible notes are secured over the oil and gas leases held in Oklahoma and Kansas on a first priority basis. The subsidiaries of AusTex Oil Limited being International Energy Corporation (Oklahoma), Inc., International Energy Corporation of Northern Oklahoma, Inc. and International Energy Corporation (Kansas), Inc. also guarantee the performance of AusTex Oil Ltd of its financial obligations under the convertible notes.
AOK Price at posting:
17.7¢ Sentiment: LT Buy Disclosure: Held
