Texas Business reports:  GRAPEVINE—GreenHunter Energy Inc., a diversified renewable energy company focused on water resource management, biomass power generation, wind and solar energy projects, closed a non-brokered private placement of 522,500 units of GreenHunter Energy Inc. at a price of $2.00 per unit, for aggregate gross proceeds of $1,045,000.

Additionally, as part of this offering, GreenHunter's largest institutional shareholder, West Coast Opportunity Fund  LLC, has elected to convert 772.5 shares of its 2007 Series A 8% convertible preferred Stock and 772.5 shares of its 2008 Series B Convertible Preferred Stock into 772,500 Units of GreenHunter Energy pursuant to the terms of the offering.

In conjunction with this closing, GreenHunter's chief executive Gary C. Evans, elected to convert $500,000 due under an existing promissory note to him into the equivalent units (250,000 Units) of GreenHunter Energy pursuant to the terms of the offering.

Each unit consists of two common shares and two stock purchase warrants.

One warrant entitles the holder to purchase one additional common share at a price of $1.50 per share and one warrant entitles the holder to purchase one additional common share at a price of $2.50 per share. Both warrants have an expiration date of January 31, 2014.

The net proceeds of the private placement are planned to be used to fund further development of GreenHunter's shift into the water resource management business associated with the oil and natural gas sector, as well as for working capital and for general corporate purposes.

The securities comprising the units issued under the private placement were issued pursuant to exemptions from the prospectus requirements of applicable securities laws and are subject to resale restrictions prescribed under applicable securities laws including a six month holding period.

“Our board of directors and senior management made a decision earlier this year to strategically change our corporate direction to concentrate specifically on water resources management directly related to the oil and gas industry,” Evans said in a prepared statement. “Due to the significant development presently ongoing in the unconventional resource plays located here in the United States, and the ever increasing needs for water due to fracture stimulation requirements, GreenHunter Energy is planning to be a significant player within this growing business segment. With the combination of this recent private placement of equity in conjunction with the negotiations currently underway on three separate acquisitions in the water resource business being pursued on behalf of GreenHunter Energy, we have begun the process of rebuilding this company in an exciting business segment that has tremendous future growth potential.”