Company sells 10% convertibles to lone investor Hexagon Investments
By Devika Patel
Knoxville, Tenn., April 26 - Prospect Global Resources Inc. settled a $2.5 million private placement of 10% secured convertible notes with Hexagon Investments, LLC on April 25, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The offering took in $19 million.
The note matures on April 24, 2012 and is convertible at any time into common shares at $3.00 per share. The conversion price is a 6.25% discount to the April 21 closing share price of $3.20.
The investor also received two warrants. The first warrant is exercisable for up to $2 million of shares until April 25, 2013. The second warrant is exercisable for up to $7.5 million of shares until April 25, 2014. Both warrants have a strike price equal to the lower of $3.00 and $2.5 million divided by the total number of shares issued upon conversion of the note.
Based in Denver, Prospect Global is a resource exploration company.
| Issuer: | Prospect Global Resources Inc.
|
| Issue: | Secured convertible note
|
| Amount: | $2.5 million
|
| Maturity: | April 24, 2012
|
| Coupon: | 10%
|
| Conversion price: | $3.00
|
| Warrants: | For $9.5 million of shares
|
| Warrant expiration dates: | April 25, 2013 (for $2 million of shares), April 25, 2014 (for $7.5 million of shares)
|
| Investor: | Hexagon Investments, LLC
|
| Settlement date: | April 25
|
| Stock symbol: | OTCBB: PGRX
|
| Stock price: | $3.20 at close April 25
|
| Market capitalization: | $68.79 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.
