AUSTIN, Texas, July 6, 2015 /PRNewswire/ -- FieldPoint Petroleum Corporation (NYSE/MKT:FPP) is issuing this reminder that effective with the opening of trading today, July 6, 2015, and continuing until 5:00 p.m. EDT on August 7, 2015 it will temporarily reduce the exercise price of all of its outstanding publicly traded warrants (the "Warrants"). The Warrants were issued as a dividend to the holders of its common stock on March 26, 2012 and currently trade on the NYSE MKT under the ticker symbol "FPP WS".
Phillip Roberson, President and CFO of the Company, said, "As previously stated, recent market conditions have created excellent opportunities to acquire producing assets that require additional capital. However, our long lived assets and low depletion rate give us the advantage of being able to patiently wait for the right market conditions. We believe those conditions have arrived and that this temporary reduction in exercise price could provide an economical method of raising capital for that purpose. With adequate shareholder support, this could significantly impact both our growth strategy and general corporate purposes."
The Warrants are currently exercisable to purchase shares of the Company's common stock at price of $4.00 per share. Due to recent declines in commodities prices and the resultant loss of market value of the Company's Common Stock, the initial exercise price of the Warrants is significantly above the market value of the underlying Warrant Shares. To provide an incentive to Warrant holders to exercise their Warrants, the Company's Board of Directors has approved a temporary modification pursuant to which for a period of 33 days commencing at the opening of trading on July 6, 2015 and ending at the close of trading on August 7, 2015 (the "Modification Period"), the Exercise Price of the Warrants shall be reduced to $1.00 per share of Common Stock (the "Warrant Modification"). Any and all Warrants remaining unexercised after the expiration of the Modification Period shall remain in full force and effect for the duration of their term with the Initial Exercise Price being reinstated following such Modification Period.
Roger Bryant, Executive Chairman, added, "We hope that enough shareholders are able to take advantage of this reduction in exercise price to have a significant impact on our growth strategy. If you have any questions regarding the exercise procedure, please contact FieldPoint or your broker."
FieldPoint Petroleum Corporation is engaged in oil and natural gas exploration, production and acquisition, primarily in Louisiana, New Mexico, Oklahoma, Texas and Wyoming. For more information, please visit www.fppcorp.com.
This press release may contain projection and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Any such projections or statement reflect the company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such projections will be achieved and that actual results could differ materially from those projected. A discussion of important factors that could cause actual results to differ from those projected, such as decreases in oil and natural gas prices and unexpected decreases in oil and natural gas production is included in the company's periodic reports filed with the Securities and Exchange Commission (at www.sec.gov)
SOURCE FieldPoint Petroleum Corporation