MMEX RESOURCES CORPORATION (OTCMKTS:MMEX) Files An 8-K Unregistered Sales of Equity Securities
Item 3.02 Unregistered Sales of Equity Securities
On January 8, 2019, we closed a financing with Geneva Roth Remark Holdings, Inc. for a 9% convertible note in the principal amount of $136,000, with an original discount of $8,000. After deducting $3,000 of lender expenses, the financing provided $125,000 of net proceeds to us. The holder of the note, at its option, may convert the unpaid principal balance of, and accrued interest on, the note into shares of common stock at a 21% discount from the average of the three lowest trading prices during the 20 days prior to conversion. The Company may prepay the note at a 5% redemption premium during the first 30 days after issuance, increasing in 5% increments each 30 day period thereafter until 180 days from issuance, after which the note may not be prepaid. The note also contains penalty provisions in the event of our default in repayment of the note (if not converted by the holder into shares of common stock) on the maturity date of April 4, 2020.
On January 14, 2019, we closed a financing with One44 Capital LLC for a 12% convertible note in the principal amount of $120,000. After deducting $6,000 of lender expenses, the financing provided $114,000 of net proceeds to us. The holder of the note, at its option, may convert the unpaid principal balance of, and accrued interest on, the note into shares of common stock at a 40% discount from the lowest trading price during the 20 days prior to conversion (with a floor of $.03 per share during the first six months after issuance). The Company may prepay the note at a 30% redemption premium during the first 60 days after issuance and 40% premium thereafter until 180 days from issuance, after which the note may not be prepaid. The note also contains penalty provisions in the event of our default in repayment of the note (if not converted by the holder into shares of common stock) on the maturity date of January 11, 2020.
Any issuance of the shares upon conversion of the notes will be exempt from registration to the exemption provided by Section 4(2) of the Securities Act of 1933.
About MMEX RESOURCES CORPORATION (OTCMKTS:MMEX)
MMEX Resources Corporation, formerly MMEX Mining Corporation, is an oil and gas company. The Company is involved in the evaluation, acquisition and development of oil and gas, refining, power generation, natural gas transmission and processing energy projects in the western United States and Latin America. The Company is involved in the natural resource project development and project financing in North and South America, and the United Kingdom. The Company was engaged in the exploration, extraction and distribution of coal.