Europe Something Happening PR EUROGASWalter Storm Subscribes to US $ 7,000,000 EuroGas Convertible Debenture
Ticker Symbol: U:EUGS X:FRANKFURT:EUG X:XETRA:EUG ?:HAMB:EUG ?:STUT:EUG
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EuroGas, Inc. (PINKSHEETS: EUGS) (FRANKFURT: EUG) (XETRA: EUG) (HAMB: EUG) (STUT: EUG) today announced that Walter Storm has exercised his contractual right to subscribe to a $ 7,000,000 convertible debenture that was previously announced on October 16, 2009. In so doing, Mr. Storm has given EuroGas notice that he will take over the interest previously held by Forstgarten International GmbH (Forstgarten) which was participating in the financing with Mr. Storm under the previously announced agreement. EuroGas has already received funds sent by Mr. Storm for the first tranche of the convertible debenture financing.
Mr. Storm increased his participation in the financing when EuroGas and Forstgarten agreed to terminate their agreement. The terms of the agreement with Mr. Storm will remain unchanged from those previously announced. Mr. Storm will have the right to convert his debenture into restricted EuroGas common shares at $ 0.25 per share during the first year, $ 0.35 per share during the second year and $ 0.50 per share during the third year.
"EuroGas is pleased by the vote of confidence that Walter Storm has given us by increasing his participation to 100% of the convertible debenture private placement," said Wolfgang Rauball, CEO, EuroGas. "Walter has been a long time shareholder of the company and has been steadfast in his support of the company. More than simply a financier, Walter's breadth of knowledge of international oil and gas exploration will be another resource on which EuroGas will rely to build shareholder value. We are fortunate to have Walter as a partner."
Mr. Walter Storm is a highly successful industrialist with international resource and industrial holdings. He is also the founder and a major indirect shareholder of EurAsia, which is the largest shareholder of Osisko Mining Corp., a TSE-listed company with a current market valuation in excess of CAD $ 2 billion. According to a June 2009 Study by UBS Switzerland EurAsia owns 42 million shares of Osisko's common stock which are currently valued at in excess of USD 330,000,000. Mr. Storm, through EurAsia, was Osisko's major financial backer through its exploration and development stages. The capital provided to Osisko by EurAsia enabled Osisko's management team to build its market capitalization from USD 15 million to its current level of more than USD 2 billion in less than five years. EurAsia's shareholder also own significant producing oil and gas interests in Canada and Kazakhstan, as well as important global resource sector related companies and assets. (https://eurasiaholding.com)
About EuroGas, Inc.
EuroGas is a publicly traded oil and gas company with assets in Ukraine and Poland, as well as talc mining interests in the Slovak Republic. The company's common stock trades on the Frankfurt, Hamburg and Stuttgart Stock Exchanges and XETRA in Germany under the symbol EUG and on the Other OTC (Pink Sheets) in the United States under the symbol EUGS. (www.eurogasinc.com)