San Francisco, CA, April 05, 2012 --(PR.com
)-- Ironridge Energy Co., an institutional investor financing small cap public companies in the energy sector, today announced that it has entered into a $1.4 million equity financing with Worthington Energy, Inc. (OTCBB: WGAS), an exploration stage company engaged in the acquisition, exploration, development and production of oil and natural gas.
In the transaction, Worthington settled approximately $1.4 million in accounts payable, which Ironridge had acquired from various creditors of the company, in exchange for unregistered shares of common stock. The transaction thereby substantially reduced Worthington’s liabilities, including its outstanding accounts payable balance.
In connection with the deal, Ironridge represented that it does not hold any short position in the company’s stock, and agreed not to engage in or affect, directly or indirectly, any short sale of the common stock for a period of more than 90 days.
About Worthington Energy
Worthington Energy, Inc. is an oil and gas exploration and production company with assets in Texas and the Gulf of Mexico, which has determined to expand operations. The company is seeking to make additional acquisitions that are currently producing oil in the United States as a way to increase cash flow.
About Ironridge Energy
Ironridge Energy Co. is a division of Ironridge Global IV, Ltd. that specializes in equity investments in stocks related to producing or supplying energy, including companies involved in exploration and development of oil and gas reserves, integrated power firms, and alternative energy suppliers. Ironridge is a long-only institutional investor, making direct equity investments in small cap public companies. The firm entered into more than twenty equity financing transactions last year, ranging from a quarter million to $10 million each. Ironridge seeks to be a long-term financial partner, assisting public companies in financing operations and expansion by supplying innovative funding solutions and flexible capital. The firm seeks to unlock the full potential of cash-constrained businesses, propelling higher growth and more profitable enterprises. For more information on Ironridge, please visit www.IronridgeGlobal.com.
Except for statements of historical fact, the matters discussed in this press release are forward-looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond anyone’s control, that may cause actual results to differ materially from stated expectations. These include, among others, the risks factors discussed in public reports filed with the Securities and Exchange Commission, which are available on its website at http://www.sec.gov.