Investors receive warrant coverage; notes convert at $0.50 per share
By Devika Patel
Knoxville, Tenn., Feb. 3 - American Sands Energy Corp. settled a$1.52 million private placement of 10% secured convertible promissory notes on Jan. 31, according to an 8-K filed Friday with the Securities and Exchange Commission.
The notes are due on April 30, 2014 and initially are convertible into 3.03 million common shares at $0.50 per share, which represents a 28.57% discount to $0.70, the Feb. 2 closing share price. The notes may be prepaid.
Investors also received warrants for 3,038,667 shares. Each of the warrants is exercisable at $0.50 until April 30, 2014. The strike price is also a 28.57% premium to the Feb. 2 closing price.
American Sands is an energy company in Salt Lake City.
| Issuer: | American Sands Energy Corp.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $1,515,000
|
| Maturity: | April 30, 2014
|
| Coupon: | 10%
|
| Conversion price: | $0.50
|
| Call: | Yes
|
| Warrants: | For 3,038,667 shares
|
| Warrant expiration: | April 30, 2014
|
| Warrant strike price: | $0.50
|
| Settlement date: | Jan. 31
|
| Stock symbol: | OTCBB: AMSE
|
| Stock price: | $0.70 at close Feb. 2
|
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