PLANO, TX–(Marketwired – April 17, 2017) – Torchlight Energy Resources, Inc. (TRCH) (“Torchlight” or the “Company”), today announced the closing of $8 million in unsecured 12% promissory notes through a private placement. The promissory notes bear interest at the rate of 12% per annum and mature on April 10, 2020, with interest payable monthly and a lump sum payment of outstanding principal due on maturity. The notes were issued at a purchase price of 94.25% of the principal amount, resulting in net proceeds of $7.54 million. In addition to the 12% cash interest, the notes will earn a common stock PIK at the rate of 2.5% annually.
The proceeds from the notes will be used to redeem the $3.6 million of subordinated notes outstanding and to finance two horizontal wells in the Company’s Hazel Project located in the Midland Basin, as well as for general corporate purposes.
“We are pleased to obtain this debt financing which should address our capital needs all the way into 2018,” stated John Brda, Torchlight Energy’s CEO. “We believe the terms of this debt are favorable to the Company, and will allow us to retire existing debt and add significant production in our Hazel Project through two new horizontal wells.”
About Torchlight Energy
Torchlight Energy Resources, Inc. (NASDAQ: TRCH), based in Plano, Texas, is a high growth oil and gas Exploration and Production (E&P) company with a primary focus on acquisition and development of highly profitable domestic oil fields. The company has assets focused in West and Central Texas where their targets are established plays such as the Permian Basin. For additional information on the Company, please visit www.torchlightenergy.com.