Placement includes warrants; $1.5 million raised in discounted offer
By Devika Patel
Knoxville, Tenn., May 18 - Lithium Exploration Group, Inc. completed an amended private placement of zero-coupon original issue discount convertible debentures on May 15, according to an 8-K filed Friday with the Securities and Exchange Commission. The company sold $1.68 million of debentures for $1.5 million in cash in the deal, which priced March 28.
The debentures are due in one year, and convert into common shares at a conversion price of $0.45 per share.
The investor also received five-year warrants for 3,333,333 shares, which are each exercisable at $0.45. When the deal was announced in April, the warrants had a strike price of $0.69. The company modified the warrants on May 15.
The conversion price and warrant strike price are a 34.78% discount to the March 27 closing share price of $0.69.
The Scottsdale, Ariz.-based company explores for lithium.
| Issuer: | Lithium Exploration Group, Inc.
|
| Issue: | Original issue discount convertible debentures
|
| Amount: | $1.68 million
|
| Maturity: | One year
|
| Coupon: | 0%
|
| Price: | $1.5 million
|
| Conversion price: | $0.45
|
| Warrants: | For 3,333,333 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.45
|
| Pricing date: | March 28
|
| Amended: | May 15
|
| Settlement date: | May 15
|
| Stock symbol: | OTCBB: LEXG
|
| Stock price: | $0.69 at close March 27
|
| Market capitalization: | $33.36 million
|
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