Westport Energy currently holds leases to approximately 104,000 acres of prospective coalbed methane lands in the Coos Bay Basin.
In consideration for the acquisition, Carbonics issued a senior secured convertible debenture in the principal amount of $27.64m to New Earthshell Corporation, the former owner of Westport Energy.
The debenture bears interest at the rate of 9% per annum and has a maturity date of 31 August 2012.
In addition, Carbonics also issued to YA Global Investments a secured convertible debenture in the principal amount of $650,000, which also bears interest at the rate of 9% per annum and has the same maturity date.
Carbonics said that the proceeds from this debenture will be used for its short-term operating needs.
