Investors will receive 0.751 subscription rights for every share held
By Devika Patel
Knoxville, Tenn., May 8 - Prospect Global Resources Inc. said it will conduct a units rights offering to raise up to $12 million.
The company will offer rights exercisable for units of one common share and a half-share warrant at $0.22 apiece. Investors will receive 0.751 rights for every common share held. The warrants are each exercisable at $0.35 for one year. The strike price is a 16.67% premium to the May 7 closing share price of $0.30.
In addition to the rights offering, Prospect Global intends to conduct an underwritten public offering in the next few weeks.
Proceeds will be used for Prospect Global's definitive feasibility study, to make mandatory repayments of debt and for general working capital purposes.
Based in Denver, Prospect Global is a resource exploration company.
| Issuer: | Prospect Global Resources Inc.
|
| Issue: | Units of one common share and a half-share warrant
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| Amount: | $12 million
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| Price: | $0.22
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | One year
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| Warrant strike price: | $0.35
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| Pricing date: | May 8
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| Stock symbol: | Nasdaq: PGRX
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| Stock price: | $0.30 at close May 7
|
| Market capitalization: | $21.07 million
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