GreenHunter Resources, Inc. (NYSE MKT:GRH) (NYSE MKT:GRH.PRC) (the “Company”), a diversified water resource, fluids 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 approximately $1.5 million aggregate principal amount of the Company’s Unsecured Term Notes due one year from the date of issuance together with 129,777 common stock purchase warrants. Each warrant entitles the holder to purchase one share of common stock of GreenHunter at a price of $2.25 per share. These warrants have an expiration date of five years from the date of issuance. Fifteen separate individuals or entities purchased the notes including two members of GreenHunter’s senior management, including its Chairman. The Company will use the net proceeds from this offering for the sole purpose of building MAG Tank™ panel inventory, the Company’s state-of-the-art above-ground modular storage tank.
This offering was made only to selected 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. 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.
Commenting on this placement of unsecured debt securities, Jonathan D. Hoopes, Interim-CEO, President and COO of the Company, said, “With the net proceeds from this small capital raise, we have already started to fabricate an additional 120 new MAG Panels™ to have in stock for either lease or sale to prospective customers. We have been unable to satisfy the significant demand for the MAG Tank product due to a lack of equipment inventory. During a recent Appalachia oil and gas industry conference, GreenHunter showcased a single MAG Panel which generated tremendous interest from both service providers and E&P companies. Based upon fabrication timelines, we expect these panels to be in the field generating revenue sometime during the first quarter of 2014.”