FEEC closed the last trading session with again decreasing share price and even more investors willing to sell their shares in the company. The stock lost another 7.69% and closed at $0.48 for a share on a trading volume of about one million shares.
The latest press announcement of the company, which accompanied that next drop down, was related to an outstanding note of FEEC and its conversion into shares of common stock. According to the company’s statement, the holder of the note Dart Energy has exchanged $6.8 million in principal amount for a total of 14,315,789 shares of FEEC common stock. The conversion price equaled $0.475 per share, equal also to the closing market price for the stock yesterday.
The maturity date for the remaining amount of $4.28, representing principal amount plus interest, has been extended to September 15, 2011. It looks like that additional dilution news was not so well accepted by the market, especially considering that Far East Energy has not yet confirmed through a financial report the announced first revenues.
Not so positively accepted were also the previous SEC filings from Friday last week. According to them, the company will be offering and selling between 19.52 million and 51.71 million shares of its common stock at a price of $0.5025, part of that shares to be offered to existing shareholders corresponding to the terms of the purchase agreements the company entered into in March last year.
