AMAZING ENERGY OIL AND GAS, CO. (OTCMKTS:AMAZ) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a RegistrantItem 2.03
Creation of a Direct Financial Obligation
On October 24, 2018 Amazing Energy Oil & Gas, Co. (“Amazing” or the “Company”) entered into a loan agreement with Bories Capital, LLC whereby the Company borrowed the aggregate sum of five hundred thousand and no/100 dollars ($500,000.00) (the “Loan”).
The loan matures in two (2) years and requires interest only payments until maturity. The loan is unsecured and can accelerate in full if the Company defaults on its obligations under the promissory note or the loan agreement.
The proceeds of the Loan will be used to pay down existing debt of the Company and for general working capital.
Material Modifications of Rights of Security Holders.
As additional consideration for receiving the Loan, the Company agreed to modify the terms of an Amazing common stock purchase warrant issued to Gulf South Holdings, Inc., an affiliate of Bories Capital, LLC and the rights and preferences of the shares of Amazing’s Series B Preferred Stock, all of which are held by the Lender.
The Warrant was modified to reduce the exercise price from $1.00 per share to $.40 per share, provide for a cashless exercise option and extend the expiration date of the Warrant to April 1, 2024.
The Series B Preferred shares were modified to eliminate the Company’s call provision until April 1, 2024, set the conversion period for the Series B into warrants from April 1, 2019 to April 1, 2024 and provide that the warrants into which the Series B may be converted shall have exercise prices of $.40 per share and a cashless exercise option.
The Loan Agreement and Promissory note are included herewith as Exhibits 10.1 and 10.2 respectively.
Amazing Energy Oil & Gas, Co. ExhibitEX-10.1 2 exhibit_10-1.htm LOAN AGREEMENT DATED OCTOBER 24,…To view the full exhibit click
About AMAZING ENERGY OIL AND GAS, CO. (OTCMKTS:AMAZ)
Amazing Energy Oil and Gas, Co. is an independent energy company. The Company is engaged in the business of exploration, development and production of oil and gas in the Permian Basin of West Texas. The Company is also engaged in the production and sale of oil and natural gas. The Company is developing resource potential from the Queens formation. Its additional drilling targets include the Greyburg, San Andreas and Devonian zones. As of July 31, 2016, the Company had leasehold rights within approximately 70,000 contiguous acres in Pecos County, Texas, which lies within the Permian Basin. The property is located in the Northeast region of the County. The Pecos leasehold lies within the White & Baker Field and portions of the Walker Field. The Pecos leasehold consists of multiple leases. As of July 31, 2016, its estimated net proved reserves were 745,190 barrels of oil equivalent (BOE). As of July 31, 2016, the Company owned 22 oil and gas wells in the Permian Basin.