UNITED ENERGY ANNOUNCES SECURED FINANCING OF UP TO $5 MILLION

Rhea-AI Summary

United Energy (OTCMKTS: UNRG) has announced a secured financing plan through a securities purchase agreement and convertible debt financing of up to $5 million. This funding finalizes UNRG's Stage 1 financing for its Cherokee Basin oil and gas assets. The financing will be executed via a Senior Secured Convertible Note, convertible into common stock at $0.10 per share and bearing an interest rate of 15% per annum. Facilitated by Paulson Investment Company, LLC, this investment positions UNRG for growth and potential SEC reporting status on a major exchange.

Positive

• Successfully secured financing of up to $5 million to develop Cherokee Basin assets.
• Convertible debt offers flexibility with interest rates starting at 15% per annum.
• Facilitated by a respected investment banking firm, enhancing credibility.
• Sets the stage for future growth and SEC reporting.

Negative

• None.

PLANO, Texas, Oct. 26, 2022 /PRNewswire/ -- United Energy (OTCMKTS: UNRG)

United Energy Corporation today announces it entered into a securities purchase agreement and convertible debt financing of up to $5 million. This funding completes UNRG's Stage 1 financing plan for the development of UNRG's Cherokee Basin oil and gas assets and related projects. UNRG is a diversified oil and gas producer with a 50-year history in the energy, manufacturing, and mining industries.

UNRG today announces it entered into a securities purchase agreement and convertible debt financing of up to $5 million.

The secured financing of up to $5 million is through a Senior Secured Convertible Note. If elected, the Note is convertible into UNRG's Common Stock at a conversion price of $0.10/share. It can be issued in tranches (designed for diverse investors at various risk and reward levels). It will be a senior secured obligation of United Energy and will accrue interest at a rate equal to the Prime Rate plus 9.0% per annum, with a minimum rate of 15% per annum payable monthly. The securities purchase agreement also includes two series of warrants exercisable at $0.20 and $0.30 a share.

The investment is provided by a family office investment fund. Family offices are investment funds that manage the financial assets of a family or group of families or trusts. They operate in a similar manner to standard investment funds but with more flexibility toward the objective of their principals.

Paulson Investment Company, LLC, a highly esteemed investment banking firm with nearly 50 years of operations, facilitated the institutional investor interest in United Energy. Paulson specializes in public offerings of small and emerging growth companies with capital needs of $5 to $45 million.

Brian Guinn, CEO and President of UNRG, said, "We are pleased to announce this milestone transaction which allows UNRG's operational team to scale and grow aggressively because of the expected long-term demand of natural gas – both domestically and internationally. This funding provides the financing to meet our growth projections which includes preparing United Energy for its filing to become a fully-reporting SEC company on a major exchange in the near term."

United Energy's Stage 2 financing plan includes a larger capital facility to be used for additional acquisitions and natural gas producing roll-up opportunities.

Forward-Looking Disclaimer                                                       
https://twitter.com/UNRGCorp

Media Contact:
Kimberly Stillwagon
uecorpinfo@gmail.com   
214-901-5453

Investor Contact:
Brian Guinn
info@unrgcorp.com
469-209-5829

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SOURCE United Energy Corporation

FAQ

What recent financing news was announced by United Energy (UNRG)?

United Energy announced a secured financing of up to $5 million through a securities purchase agreement and convertible debt.

What are the terms of the convertible debt financing for UNRG?

The convertible debt can convert into common stock at $0.10 per share and has a minimum interest rate of 15% per annum.

Who facilitated the financing agreement for United Energy?

Paulson Investment Company, LLC facilitated the financing agreement for United Energy.

What is the purpose of the $5 million financing for UNRG?

The financing aims to support the development of UNRG's Cherokee Basin oil and gas assets and related projects.

How could this financing impact UNRG's future?

This financing positions UNRG for aggressive growth and prepares for potential SEC reporting on a major exchange.