Company sells 10% convertibles due Aug. 3, 2012 to Avalon Portfolio
By Devika Patel
Knoxville, Tenn., Aug. 5 - Prospect Global Resources Inc. settled a $1.5 million private placement of 10% secured convertible notes with Avalon Portfolio, LLC on Aug. 3, according to an 8-K filed Friday with the Securities and Exchange Commission.
The note matures on Aug. 3, 2012 and is convertible at any time into common shares at $3.00 per share. The conversion price is a 40% discount to the Aug. 2 closing share price of $5.00.
The investor also received warrants, exercisable for up to $5.7 million shares at $3.00 per share until Feb. 3, 2014. The strike price is also a 40% discount to the Aug. 2 closing share price.
Based in Denver, Prospect Global is a resource exploration company.
| Issuer: | Prospect Global Resources Inc.
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| Issue: | Secured convertible note
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| Amount: | $1.5 million
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| Maturity: | Aug. 3, 2012
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| Coupon: | 10%
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| Conversion price: | $3.00
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| Warrants: | For $5.7 million shares
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| Warrant expiration: | Feb. 3, 2014
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| Warrant strike price: | $3.00
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| Investor: | Avalon Portfolio, LLC
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| Settlement date: | Aug. 3
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| Stock symbol: | OTCBB: PGRX
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| Stock price: | $5.00 at close Aug. 3
|
| Market capitalization: | $107.49 million
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