Far East Energy Corp. (OTCQB: FEEC) says that Far East Energy (Bermuda) Ltd., a wholly owned subsidiary of Far East Energy, has entered into a term loan facility agreement (TLFA), effective April 8, with the lenders party thereto.
The TLFA has a term of six months from first drawdown and provides for an aggregate principal amount of $4 million to be borrowed subject to the terms, conditions and repayment obligations of the TLFA. No stock, warrants or other equity securities will be issued to the lenders in connection with the TLFA.
Net proceeds from the TLFA will be utilized for certain working capital purposes as required by the TLFA. The majority of the net proceeds are targeted to cover certain operational expenses and payables as the company continues to work through strategic discussions.
Based in Houston, Texas, with an office in Beijing, China, Far East Energy is focused on coalbed methane exploration and development in China.