ASPS Energy Investments Ltd., which is managed by Robert Rosenthal, the president and CEO of North American Oil & Gas Corp. (OTC: NAMG), will convert its loan into common shares of North American Oil & Gas, the company said Feb. 3, adding that Rosenthal increased his shareholding in the company.
North American Oil & Gas entered into a $50,000 loan with ASPS on Sept. 7, 2012, the company said. The interest rate was 3%, the company added. ASPS will convert the loan and interest to date, which totals $52,153.49, into 200,590 common shares, the company said. The conversion is based on the Jan. 31 closing of 26 cents per share, the company added.
After this transaction is complete, Rosenthal will hold 8,300,590 common shares through ASPS, the company said. This amount represents 13.23% of the company’s issued capital, North American Oil & Gas said.
"While the company is in a position to repay this obligation in cash, ASPS has elected to swap its debt to equity in a show of faith in NAMG's assets and its future. Coupled with recent debt payments to East West Petroleum (TSXV: EW.V), the company has strengthened its balance sheet," said Rosenthal.
ASPS will not sell any of its shares in 2014, the company noted.
ASPS Energy Investments is a domestic limited partnership (LP) based in Houston.
North American Oil & Gas explores and produces in California’s onshore San Joaquin Basin, where it holds 4,944 net acres. It is based in Ventura, Calif.
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