Company receives proceeds of $25,000 for 8% note due March 2013
By Marisa Wong
Madison, Wis., July 9 - First Colombia Gold Corp. entered into an agreement on June 6 to issue a $27,500 convertible promissory note to Asher Enterprises, Inc. The deal settled on July 2, according to an 8-K filed Monday with the Securities and Exchange Commission.
First Colombia received proceeds of $25,000, which it plans to use to meet short-term obligations.
The 8% convertible note matures on March 6, 2013.
The note is convertible into shares of First Colombia's common stock, subject to a cap of 4.99% of the company's outstanding shares, at a conversion price equal to 58% of the market price during the 10 trading days prior to conversion.
According to the filing, the "blocker" provision limiting the number of shares issuable upon conversion may be waived by Asher upon 61-days' prior notice.
First Colombia may prepay the note at any time, subject to a prepayment penalty of 140% to 150% of the outstanding principal and interest.
The gold and silver exploration company is based in Copacabana, Antioquia, Colombia.
| Issuer: | First Colombia Gold Corp.
|
| Issue: | Convertible promissory note
|
| Amount: | $27,500
|
| Proceeds: | $25,000
|
| Maturity: | March 6, 2013
|
| Coupon: | 8%
|
| Conversion price: | 58% of market price during the 10 trading days prior to conversion
|
| Investor: | Asher Enterprises, Inc.
|
| Settlement date: | July 2
|
| Stock symbol: | OTCBB: FCGD
|
| Stock price: | $0.0016 at close July 6
|
| Market capitalization: | $60,000
|
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