Norse Energy Continues Stock Sales to Generate Cash

Norse Energy is an interesting company. MDN has written plenty about them. They have 130,000 acres of leases in, of all places, New York State. And they’ve been waiting, along with everyone else, four long years to begin drilling. And they’ve done whatever they can to stay in business, selling off assets, selling ownership slices of the company, floating bonds (debt), obtaining loans—whatever they can.

On one hand you have to have tremendous respect for a company that hangs tough. On the other hand, you want to ask them if they need their heads examined for betting the ranch on the vagaries of New York politicians.

Last week, on July 5, Norse conducted what they called “Extraordinary General Meeting.” The meeting was held at company headquarters in Norway. The purpose, going by the PowerPoint presentation Norse issued ahead of the meeting, was a dog and pony show to raise more money (see this MDN story for our preview of the meeting). Since then, Norse has been a press release issuing machine—most of the releases announcements of more money raised from stock sales. So it looks like the Extraordinary meeting accomplished its objective.

Here’s a list of the deals done since the July 5 meeting:

• July 5 – one convertible loan, which will convert to stock ownership, from existing Norse shareholder Megaron for 12,000,000 NOK, or $1.96 million. See this press release.
• July 10 – two convertible loans, which converts to stock ownership, with Mouseless Invest AS and Mabe Invest AS for 1,500,000 NOK each, or $490,000. See this press release.
• July 11 – one convertible loan, which converts to stock ownership, with MP Pensjon PK for 1,500,000 NOK, or $245,000. See this press release.

Grand total raised so far: $2,695,000. Enough to keep the lights on for a while longer yet.