Offering's funds used to acquire 50% interest in American West Potash
By Devika Patel
Knoxville, Tenn., June 29 - Prospect Global Resources Inc. said it priced a $40.04 million public sale of stock with a $6.01 million greenshoe. The deal was announced June 19.
The company will sell 15.4 million common shares at $2.60 apiece. The price per share is a 35.8% discount to the June 28 closing share price of $4.05.
Dahlman Rose & Co., LLC, ROTH Capital Partners, LLC and Sterne, Agee & Leach, Inc. are the joint bookrunners, and Wunderlich Securities, Inc. and Gilford Securities Inc. are the co-managers.
Settlement is expected July 5.
Proceeds will be used for the initial payment due to the Karlsson Group in connection with the company's acquisition of the Karlsson Group's 50% interest in American West Potash LLC, to prepare a bankable feasibility study and for mine planning, permitting, an environmental study, engineering and general corporate purposes.
Based in Denver, Prospect Global is a resource exploration company.
| Issuer: | Prospect Global Resources Inc.
|
| Issue: | Common shares
|
| Amount: | $40.04 million
|
| Greenshoe: | $6,006,000
|
| Shares: | 15.4 million
|
| Price: | $2.60
|
| Warrants: | No
|
| Bookrunners: | Dahlman Rose & Co., LLC, ROTH Capital Partners, LLC and Sterne, Agee & Leach, Inc.
|
| Announcement date: | June 19
|
| Pricing date: | June 29
|
| Settlement date: | July 5
|
| Stock symbol: | OTCBB: PGRX
|
| Stock price: | $4.05 at close June 28
|
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