|9 Months Ended|
Sep. 30, 2019
|Note 9 - Subsequent Events||
Subsequent to September 30, 2019, the Company organized the following additional subsidiaries in Nevada, Texas and Louisiana: Elysium Energy Holdings, LLC, a Nevada limited liability company; Elysium Energy, LLC, a Nevada limited liability company; Elysium Energy TX, LLC, a Texas limited liability company; and Elysium Energy LA, LLC, a Louisiana limited liability company.
On October 3, 2019, the Company received $480,200 under an agreement that requires the Company to make 28 weekly payments aggregating $666,400 through April 13, 2020. The agreement contains early payment discounts.
On October 10, 2019, Elysium Energy, LLC (“Purchaser”) entered into a Purchase and Sale Agreement with several selling entities (collectively the “Sellers”). Certain of the Sellers were also sellers in the Ichor Energy acquisition. The Purchaser agreed to purchase from Sellers (the “Acquisition”) their working interests and over-riding royalty interests in oil and gas properties in Texas (approximately 71 wells in 11 counties) and Louisiana (approximately 52 wells in 6 parishes), along with associated wells and equipment. The purchase price is $40,000,000, as adjusted pursuant to the terms of the Purchase Agreement, in cash at closing (the “Purchase Price”). The Purchaser paid a deposit of $1,000,000 into escrow, which deposit will be applied toward the Purchase Price at closing or be released: (i) to the Sellers if the transaction does not close under certain circumstances; or (ii) to the Purchaser if the transaction does not close under certain circumstances. The Company is pursuing financing alternatives for the Acquisition with various lenders. Consequently, there is no assurance that the Company will complete the Acquisition.
On October 24, 2019, the Company made a $4,000,000 voluntary principal payment under the Ichor Energy Term Loan Credit Agreement.
Effective as of October 31, 2019, all the warrant holders associated with the 2018 10% Secured Promissory Notes (the “Notes”) consented to a limited time modification to the exercise price of their 28,796,250 warrants from $0.20 to $0.10. Multiple warrant holders then elected to exercise 20,416,350 of these warrants for an aggregate exercise price of $2,041,635. As to $1,860,635 of such exercise price consideration, the applicable warrant holders agreed to pay such exercise price by reducing the principal amount owing by the Company to the warrant holders under the Notes. As to the balance of $181,000 of such exercise price consideration, the applicable warrant holders agreed to pay such amount in cash to the Company. This limited time modification offer expired at 5:00pm on October 31, 2019, and the 8,379,900 warrants that were not exercised remain subject to their original terms.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef