By Devika Patel
Knoxville, Tenn., June 2 - America West Resources, Inc. settled a $4 million loan agreement and shares placement on May 27, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
Under the $3.8 million loan agreement, a subsidiary, America West Services, Inc., borrowed $2.3 million, which will be represented by two-year notes, with the remaining $1.5 million available upon satisfaction of certain coal production requirements, acquisition of additional equipment and other conditions.
The notes bear interest at 16%, compounded annually, with interest payable monthly beginning in August. The principal is due at maturity on May 27, 2011. The notes are secured by substantially all of the subsidiary's assets and are guaranteed by the parent.
The parent company also sold 41.8 million common shares for $150,000.
John Thomas Bridge & Opportunity Fund, LP bought an $805,000 note and 14.63 million shares for $52,500.
Based in Salt Lake City, Utah, America West is engaged in coal mining operations.
| Issuer: | America West Resources, Inc.
|
| Issue: | Loan, common stock
|
| Amount: | $4 million
|
| Warrants: | No
|
| Investor: | John Thomas Bridge & Opportunity Fund, LP (for $857,500)
|
| Settlement date: | May 27
|
| Stock symbol: | OTCBB: AWSR
|
| Stock price: | $0.10 at close May 27
|
| Market capitalization: | $18.7 million
|
|
|
| Loan
|
| Amount: | $3.8 million
|
| Maturity: | May 27, 2011
|
| Coupon: | 16%
|
| Price: | Par
|
| Yield: | 16%
|
|
|
| Shares
|
| Amount: | $150,000
|
| Shares: | 41.8 million
|
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