Fountain Oil Closes Debenture Issue.HOUSTON--(BUSINESS WIRE)--Feb. 22, 1996--Fountain Oil Incorporated (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NMS See NetWare Management System. :GUSH) reported today that it had closed the offering of 8 percent Convertible Subordinated Debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before due Dec. 31, 1997. Fountain received gross proceeds of $3,750,000 and net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $3,350,000 after commissions and expenses. The debentures, which are subordinated to indebtedness for borrowed money, are convertible into shares of Fountain Common Stock at a price equal to 82 1/2 percent of market price at the time of conversion, and a maximum of 309,500 shares of Fountain Common Stock are issuable upon conversion of each $1,000,000 principal amount of the debentures. Debentures may not be converted until 45 days after the closing date of Feb. 15, 1996, and then no more than one-third of the debentures may be converted until 75 days after this date and no more than two-thirds of the debentures may be converted until 110 days after this date. A spokesman for Fountain Oil said that the Company expects to utilize most of the net proceeds in connection with the activities of its oil and gas division involving the development of the Company's Eastern European oil and gas projects. The debentures and the underlying Common Stock have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. or to or for the account or benefit of a United States person The term United States person or U.S. person is used in the context of data collection and intelligence by the United States, particularly with respect to the provisions of the Foreign Intelligence Surveillance Act. If information from, about, or to a U.S. absent registration under that Act or an applicable exemption from the registration requirements of that Act. Fountain Oil is actively acquiring and developing a portfolio of oil and gas properties. The Company has also developed and is marketing a patented, electrically enhanced oil recovery Enhanced Oil Recovery (EOR) is a generic term for techniques for increasing the amount of oil that can be extracted from an oil field. Using EOR, 30-60 %, or more, of the reservoir's original oil can be extracted [1] compared with 20-40% [2] technology used to increase the production of paraffinic and heavy oil. CONTACT: Fountain Oil Incorporated Gary J. Plisga, 713/492-6992 (United States) Nils N. Trulsvik, (47) 66 90 31 44 (Europe) or Liviakis Financial Communications, Inc. John M. Liviakis, 916/448-6084 (United States) |
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