Company sells 10% convertible notes due Sept. 19, 2012, to Hexagon
By Devika Patel
Knoxville, Tenn., Sept. 23 - Prospect Global Resources Inc. settled a $1.5 million private placement of 10% secured convertible notes with Hexagon Investments, LLC on Sept. 19, according to an 8-K filed Friday with the Securities and Exchange Commission.
The note matures on Sept. 19, 2012 and is convertible at any time into common shares at $4.00 per share and will automatically convert under certain circumstances. The conversion price is a 48.39% discount to the Sept. 16 closing share price of $7.75.
The investor also received warrants, exercisable for up to $3.75 million of shares at $4.00 per share until Sept. 19, 2013. The strike price is also a 48.39% discount to the Sept. 16 closing share price.
Based in Denver, Prospect Global is a resource exploration company.
| Issuer: | Prospect Global Resources Inc.
|
| Issue: | Secured convertible note
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| Amount: | $1.5 million
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| Maturity: | Sept. 19, 2012
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| Coupon: | 10%
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| Conversion price: | $4.00
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| Warrants: | For $3.75 million of shares
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| Warrant expiration: | Sept. 19, 2013
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| Warrant strike price: | $4.00
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| Investor: | Hexagon Investments, LLC
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| Settlement date: | Sept. 19
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| Stock symbol: | OTCBB: PGRX
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| Stock price: | $7.75 at close Sept. 19
|
| Market capitalization: | $173.97 million
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