RAM Energy Resources Announces Anticipated Proceeds of $86.6 Million from Warrant Exercise
15 Mai 2008 - 1:31AM
Business Wire
RAM Energy Resources, Inc. (Nasdaq: RAME) announced today that the
Company expects to receive net proceeds of $86.6 million from the
exercise, at a price of $5.00 per share, of 17.6 million of its
previously publicly traded warrants upon completion of the
settlement process. The 17.6 million registered shares of RAM
common to be issued in conjunction with the exercise of the
warrants, combined with the company�s existing outstanding common
shares at March 31, 2008 of 60.8 million, brings total common
shares outstanding to approximately 78.4 million. The remaining 1.2
million of unexercised warrants expired by their terms at 5:00
p.m., EDT on Monday, May 12, 2008. All proceeds will be utilized to
reduce the $200 million term portion of the company�s outstanding
debt, which currently bears an interest rate of 10.25%. As a result
of this reduction, interest expense is anticipated to decrease by
$739,000 per month or approximately $0.02 per fully diluted share
on a quarterly basis. �This influx of capital will allow the
company to significantly reduce leverage by substantially shrinking
the most expensive tranche of borrowings and further enhance our
investment competitiveness in the current market,� said Larry E.
Lee, RAM�s Chairman and CEO. Forward-Looking Statements This
release includes certain statements that may be deemed to be
�forward-looking statements� within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements in this
release, other than statements of historical facts that address
anticipated proceeds from warrant exercise, number of common shares
ultimately issued from the warrant exercise and consequently the
estimated total number of resulting shares outstanding, planned
non-acquisition capital expenditures or developments that the
company expects or believes are forward-looking statements.
Although the company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include the failure to deliver up to 6.1 million warrants during
the remainder of the �broker protect period,� actions taken and to
be taken by the company or government as a result of political and
economic conditions, continued availability of capital and
financing, and general economic, market or business conditions as
well as other risk factors described from time to time in the
company�s filings with the SEC. The company assumes no obligation
to update publicly such forward-looking statements, whether as a
result of new information, future events or otherwise. RAM Energy
Resources, Inc. is an independent energy company engaged in the
acquisition, exploitation, exploration, and development of oil and
gas properties and the marketing of crude oil and natural gas.
Company headquarters are in Tulsa, Oklahoma, and its common shares
are traded on the Nasdaq under the symbol RAME. For additional
information, visit the company website at www.ramenergy.com.
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