Post Falls-based JayHawk Energy Inc. has issued 1.6 million shares of its common stock to retire a 12 percent convertible debenture that would have been due on July 30, 2010. Additionally, this conversion alleviates approximately $56,000 in accrued interest.
JayHawk Energy CEO Lindsay Gorrill said in a release that the issue strengthens the company’s balance sheet and provides flexibility to use this capital on the development of its Williston Basin properties.
He added that it relieves JayHawk from paying any of the principal amount of the debenture and/or any interest accrued. This reduces the debt on the company balance sheet by approximately 50 percent.
JayHawk Energy is a managed risk, oil and gas exploration/exploitation, development and production company with activities focused on two major projects in the Cherokee Basin, Kansas and the Williston Basin, North Dakota.