GreenHunter Resources, Inc. (NYSE MKT: GRH) (NYSE MKT: GRH.PRC) (the “Company”),
a diversified water resource, waste management and environmental services company specializing in the unconventional oil and natural gas shale resource plays, announced today the closing of a private placement of 181,786 units consisting of an aggregate of 181,786 shares of the Company’s 10% Series C Cumulative Preferred Stock and 282,778 common stock purchase warrants, for aggregate gross proceeds of $3,181,255. Each warrant entitles the holder to purchase one share of common stock at a price of $2.25 per share. The warrants have an expiration date of September 19, 2018. The purchasers of the securities were Context Capital Management, LLC, Forward Management LLC, Crow Point Partners and New Salem Investment Capital, LLC.
MLV & Co. acted as the placement agent for the offering.
The Company intends to use proceeds from the offering to fortify its Oilfield Fluid Management Solutions™ infrastructure. The offering was made only to select accredited investors in accordance with Section 4(2) under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. The securities offered in this placement have not been registered under the Securities Act of 1933, or state securities laws, and cannot be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from the registration requirements. As part of the transaction, the Company has agreed to file a registration statement with the SEC covering the resale of the shares of 10% Series C Cumulative Preferred Stock and common stock underlying the warrants to be issued in the offering. This news release is neither an offer to sell nor a solicitation of an offer to buy any of the securities discussed herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any state.