Magellan Petroleum
Corporation ("Magellan" or the "Company") MPET today announced
that on October 10, 2014, the Company entered into an Options and Stock
Purchase Agreement (the "Agreement") to repurchase 250,000 shares and
options to acquire 1,512,500 shares of Magellan's common stock from William
Hastings, the former president and chief executive officer of the Company.
The gross proceeds payable to Mr. Hastings pursuant to the Agreement total
$1,445,625 (the "Proceeds"). The Proceeds were calculated on the basis of an
assumed price of $1.85 per common share, representing an 8% and 5% discount
to the 10- and 30-day trailing volume-weighted average closing market price
per common share, respectively.
The options to be repurchased represent 56% of the total of 2,712,500
options previously granted to Mr. Hastings in December 2008 as part of his
compensation as an executive of the Company (the "Options"). The Options,
which are fully vested and have an exercise price of $1.20 per share, are
scheduled to expire in December 2015. Following the repurchase, Mr. Hastings
will still own 1,200,000 Options.
Tom Wilson, President and Chief Executive Officer of the Company, commented:
"This Agreement allows us to remove a substantial overhang on our stock
created by the potentially dilutive impact of Mr. Hastings's stock options.
Given the growth potential of our Company and its various projects, we
believe the opportunity to repurchase such a large quantity of options and
shares on the basis of a $1.85 share price represents great value for our
other shareholders."
Subject to certain conditions in the Agreement, the Company expects to make
the payment of the Proceeds, net of applicable tax withholdings, on or
before October 17, 2014.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Posted In: NewsPress Releases
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in