Energy Direct Exchange Listing with 350K ELOC

Oil and Gas Direct Exchange Listing with 350K ELOC:

Equity line of credit (ELOC) is a beneficial instrument for companies who are planning for direct listing on the exchange. It is a sophisticated technique to access institutional capital and provides a flexible and cost-effective means of continually funding the company.
The company can withdraw up to 750 million from the credit line in tranches as needed. The following are some common terms:

Available Amount: Generally, $25 million to $750 million, duration: 36 months (sometimes 24 or 18 months).

Determination of Purchase Price: The purchase price is generally a discount of 10 % to the volume weighted average price (VWAP) of the company’s common stock over a period of 20 to 30 business days after delivery by the company of a drawdown notice to the investor.

Minimum Acceptable Price: The company may specify a minimum acceptable price in connection with a drawdown notice but is not required to do so.

Investor Fee: The investor typically receives a fee in cash, stock and warrants upon signing the equity purchase agreement. Fees vary but recent deals have had fees ranging from 2-4%.