Company sells one-year discounted promissory note for $500,000 in deal
By Devika Patel
Knoxville, Tenn., Aug. 15 - Liberty Star Uranium & Metals Corp. sold a $555,000 convertible promissory note on Aug. 14, according to an 8-K filed Thursday with the Securities and Exchange Commission. The company will receive $500,000, for an original issue discount of $55,000.
The note matures in one year and is convertible at a price equal to 70% of the average of the three lowest closing prices in the 20 trading days preceding the conversion. If the note is not repaid in the first 90 days, there will be a one-time interest payment of 12%.
Located in Tucson, Liberty Star is a uranium exploration company.
| Issuer: | Liberty Star Uranium & Metals Corp.
|
| Issue: | Convertible promissory note
|
| Amount: | $555,000
|
| Maturity: | One year
|
| Price: | $500,000 (original issue discount of $55,000)
|
| Coupon: | One-time interest payment of 12% if note repaid in 90 days
|
| Conversion price: | 70% of the average of the three lowest closing prices in the 20 trading days preceding the conversion
|
| Warrants: | No
|
| Settlement date: | Aug. 14
|
| Stock symbol: | OTCBB: LBSR
|
| Stock price: | $0.03 at close Aug. 13
|
| Market capitalization: | $24.85 million
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