Company sells notes along with five-year warrants for common shares
By Devika Patel
Knoxville, Tenn., Sept. 27 - Lithium Exploration Group, Inc. raised $250,000 in the first tranche of a $500,000 private placement of convertible promissory notes with JMJ Financial on Sept. 16, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced on Sept. 13 and may be increased to $2 million.
The 15% note is due in 18 months and is convertible into common shares at a 50% discount to the lowest closing price of the stock over the 20 trading days preceding the date of the purchase agreement or the conversion date.
JMJ also will receive warrants for $500,000 of common shares. The five-year warrants are exercisable at $0.07, which is a 46.15% discount to the Sept. 12 closing share price of $0.13.
The Scottsdale, Ariz.-based company explores for lithium.
| Issuer: | Lithium Exploration Group, Inc.
|
| Issue: | Convertible promissory note
|
| Amount: | $500,000
|
| Maturity: | 18 months
|
| Coupon: | 15%
|
| Price: | $1 million
|
| Conversion price: | A 50% discount to the lowest closing price of the stock over the 20 trading days preceding the date of the purchase agreement or the conversion date
|
| Warrants: | For $500,000 of shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.07
|
| Investor: | JMJ Financial
|
| Pricing date: | Sept. 13
|
| Settlement date: | Sept. 16 (for $250,000)
|
| Stock symbol: | OTCBB: LEXG
|
| Stock price: | $0.13 at close Sept. 12
|
| Market capitalization: | $5.5 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.
