Note sold at 10% discount to single investor
By Angela McDaniels
Tacoma, Wash., Dec. 8 – Liberty Star Uranium & Metals Corp. sold a $500,000 two-year convertible promissory note to an institutional investor for $450,000 on Nov. 10.
The note is convertible at any time into common stock at 70% of the average of the three lowest closing prices in the 20 trading days prior to the conversion, according to an 8-K filing with the Securities and Exchange Commission.
The note can be prepaid within 90 days without a premium and without interest. After 90 days, a one-time interest charge of 12% is applied and the note may not be prepaid without the holder’s consent.
Based in Tucson, Liberty Star is a uranium and mineral exploration company.
| Issuer: | Liberty Star Uranium & Metals Corp.
|
| Issue: | Convertible promissory note
|
| Amount: | $500,000
|
| Price: | $450,000, or 90% of par
|
| Maturity: | Two years
|
| Conversion price: | 70% of the average of the three lowest closing prices in the 20 trading days prior to the conversion
|
| Call option: | Within 90 days without premium or interest; after 90 days, at 112% of par with noteholder’s consent
|
| Warrants: | No
|
| Pricing date: | Nov. 10
|
| Stock symbol: | OTC: LBSR
|
| Stock price: | $0.0036 at close Dec. 8
|
| Market capitalization: | $4.92 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
