In Hyperdynamics Settlement, Former CEO and a Consultant to Donate 2M Shares to Charitable Group, American Friends of Guinea
July 26, 2010, 6:00 a.m. EDT · Recommend · Post:
Hyperdynamics Signs Lockup Agreements with Major Shareholders
HOUSTON, July 26, 2010 /PRNewswire via COMTEX/ — Hyperdynamics Corporation /quotes/comstock/14*!hdy/quotes/nls/hdy (HDY 0.99, 0.00, 0.00%) today announced that it has reached lockup agreements with Kent Watts, former Chairman and CEO, and Mike Watts, a former consultant to the Company. The Watts brothers agreed to lock up and donate to a Guinea supportive charity the vast majority of the shares under their control. Having a common goal to realize long-term shareholder value and understanding the market dynamics for the Company’s common stock, the Watts required no compensation for the lockup and expressed a serious commitment to continue to bring confidence to the Company’s market.
“This agreement reflects our long-term commitment to helping the Company realize its world-class potential offshore Guinea,” said Kent Watts. “I believe that the milestones reached over the past year — bringing Dana Petroleum into the project, renegotiating the concession and structuring the 3-D seismic program — suggest a much higher value than is being reflected in the market. It our desire to see this value reflected for the benefit of shareholders as we remain fully committed to the Company and to Guinea.”
Ray Leonard, Chief Executive of Hyperdynamics said, “This lockup agreement is an indication of the support and confidence that our largest shareholders have placed in us to succeed in building a world-class oil and gas company.”
The agreements cover a nine-month lockup period that precludes the trading of more than 17 million shares of common stock. The locked up shares are comprised of approximately 13.4 million free-trading shares along with warrants to purchase approximately 4 million shares. The lockup represents 13 percent of outstanding shares and 34 percent of outstanding warrants of Hyperdynamics stock. The agreements also state that 15 percent of the locked up shares would be released when the stock price reaches $3 a share for five consecutive trading days; 50 percent would be released when the price reaches $5 a share for five days; and 100 percent would be released when the stock price reaches $9 a share for the same period. The lockup agreements replace earlier agreements, which have expired.
The Watts brothers also reaffirmed in this agreement their commitment to donate a total of 2 million shares and 1 million warrants to the American Friends of Guinea, a charitable organization with which the Company is working to provide support to the people of Guinea.