GreenHunter Energy, Inc. (NYSE Amex: GRH) has directed the expertise in the oil and natural gas industry of its management and Board to sustainable energy solutions with existing opportunities for growth.
Private Placement $1 Million: The net proceeds of the private placement with aggregate gross proceeds of $1,045,000 are planned to be used to fund further development of GreenHunter’s strategic shift into the water resource management business associated with the oil and natural gas sector, as well as for working capital and for general corporate purposes.
Private Placement: On June 21, 2011, the Company announced the closing of a non-brokered private placement of 522,500 Units of GreenHunter Energy, Inc. at a price of $2.00 per unit, for aggregate gross proceeds of $1,045,000.
Negotiations on Three Acquisitions: With the combination of this recent private placement of equity in conjunction with the negotiations currently underway on three separate acquisitions in the water resource business being pursued on behalf of GreenHunter Energy, the process of rebuilding this company has been initiated in a business segment that has tremendous future growth potential.
Additionally, as part of this offering, GreenHunter’s largest institutional shareholder, West Coast Opportunity Fund, LLC, has elected to convert 772.5 shares of its 2007 Series A 8% Convertible Preferred Stock and 772.5 shares of its 2008 Series B Convertible Preferred Stock into 772,500 Units of GreenHunter Energy pursuant to the terms of the offering.
In conjunction with this closing, GreenHunter’s Chairman and Chief Executive Officer, Gary C. Evans, has also elected to convert $500,000 due under an existing promissory note to him into the equivalent Units (250,000 Units) of GreenHunter Energy pursuant to the terms of the offering.
Each unit consists of two common shares and two stock purchase warrants. One warrant entitles the holder to purchase one additional common share at a price of $1.50 per share and one warrant entitles the holder to purchase one additional common share at a price of $2.50 per share. Both warrants have an expiration date of January 31, 2014.
Funds Use for Water Resource Management: These funds support the strategic change in corporate direction to concentrate specifically on water resources management directly related to the oil and gas industry.
Due to the significant development presently ongoing in the unconventional resource plays located here in the United States, there has been an ever increasing needs for water due to fracture stimulation requirements.
GreenHunter Energy is planning to be a significant player within this growing business segment.
GreenHunter Energy, Inc.
Jonathan D. Hoopes President & COO
1048 Texan Trail Grapevine, TX 76051
Tel: (972) 410-1044
Any statements in this release regarding future expectations and prospects for GreenHunter Energy and its business and other statements containing the words “believes”, “anticipates”, “plans”, “expects”, “will” and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Energy undertakes no obligation to update these forward-looking statements in the future.
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