Proceeds will be used to accelerate continued development of Torchlight Energy assets, additional liquidity for operations.
Torchlight Energy issued $3.7 million in liquidation preference (face amount) of Series B Convertible Preferred Stock in a private placement exempt from registration under the Securities Act of 1933.
Torchlight Energy expects to utilize the net cash proceeds from the sale for additional liquidity and working capital. The capital was raised primarily from institutional investors.
“This round of funding is another milestone achieved and exemplifies investor confidence in Torchlight,” said CEO John Brda. “Proceeds will be used to accelerate the continued development of our assets and provide additional liquidity for operations.
“In conjunction with the announcement of our partnership with Founders Oil and Gas, we believe that Torchlight’s capital structure is optimized to continue our various initiatives, including the highly anticipated continued development of our Orogrande asset.”