On February 15, 2017, Carbon Natural Gas Company (OTCPK:CRBO) issued and sold Class A Units to two institutional investors for an aggregate cash consideration of $22 million, and entered into a Note Purchase Agreement with two institutional investors for the issuance and sale of up to $25 million of Senior Secured Revolving Notes. Net proceeds from the Offering Transactions have been used by Carbon California LLC to complete the acquisitions of certain oil and gas assets in the Ventura Basin of California from three entities, which acquisitions also closed on February 15, 2017. The remainder of the net proceeds will be used to fund field development projects and to fund future complementary acquisitions and for general working capital purposes of Carbon California LLC.