Humboldt Capital Corporation Acquires Interest in Sharon Energy Ltd.

Strategic Insights -

Humboldt Capital Corporation, led by Chairman R.W. Lamond, has acquired a significant interest in Sharon Energy Ltd. through a private placement and loan facility. The acquisition involves the purchase of 1,750,000 common shares and warrants to purchase additional shares, giving Humboldt a stake of approximately 18% in Sharon Energy. With the option to exercise its warrants, Humboldt's interest could increase to 28% of the outstanding common shares of Sharon Energy. The acquisition is for investment purposes, and Humboldt may increase its ownership or control over common shares as market opportunities arise.

Key Takeaways:

  • Humboldt Capital Corporation acquired 1,750,000 common shares of Sharon Energy Ltd. as part of a private placement.
  • The acquisition also includes warrants to purchase 875,000 common shares at a price of $0.25 per share on or before September 3, 1998.
  • In addition, Humboldt was granted warrants to purchase 480,000 common shares at a price of $0.25 per share in connection with a loan to Sharon Energy.
  • As a result of the transactions, Humboldt currently owns 1,750,000 common shares, representing 18% of the outstanding common shares of Sharon Energy.
  • With the option to exercise its warrants, Humboldt's interest could increase to 3,105,000 common shares, representing 28% of the outstanding common shares of Sharon Energy.
  • Chairman R.W. Lamond holds approximately 60% of the outstanding shares of Humboldt Capital Corporation.

Statistics:

  • 1,750,000 common shares were acquired by Humboldt Capital Corporation in the private placement.
  • 875,000 common shares are subject to warrants at a price of $0.25 per share.
  • An additional 480,000 common shares are subject to warrants at the same price in connection with a loan to Sharon Energy.
  • Humboldt's current ownership stake in Sharon Energy is approximately 18%.
  • The option to exercise warrants could increase Humboldt's ownership stake to 28%.
  • Chairman R.W. Lamond owns approximately 60% of Humboldt Capital Corporation's outstanding shares.

Sources:

  • BUSINESS WIRE, June 9, 1998.
  • Humboldt Capital Corporation, as cited in BUSINESS WIRE, June 9, 1998