Deal conducted alongside public sale to raise a combined $28.4 million
By Devika Patel
Knoxville, Tenn., May 22 - Prospect Global Resources Inc. plans a $12.14 million rights offering of units, according to a prospectus supplement filed Wednesday with the Securities and Exchange Commission. The deal is being conducted alongside a public offering of securities. The company plans to raise up to $28.4 million in the offerings; if it doesn't raise at least $12 million from the sales, the rights offering will be terminated.
In the rights offering, the company will offer 55,162,988 units of one common share and a half-share warrant at $0.22 per unit. Each stockholder will receive 0.751 of a subscription right for each share held.
Each whole warrant is exercisable at $0.35 for one year. The strike price reflects a 66.67% premium to the May 21 closing share price of $0.21.
Corporate Stock Transfer, Inc. is the agent. The offering expires on June 6.
Proceeds will be used for development of the Holbrook Project, debt repayment and general corporate purposes.
Based in Denver, Prospect Global is a resource exploration company.
| Issuer: | Prospect Global Resources Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | $12,135,857
|
| Units: | 55,162,988
|
| Price: | $0.22
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | $0.35
|
| Agent: | Corporate Stock Transfer, Inc.
|
| Pricing date: | May 22
|
| Settlement date: | June 6
|
| Stock symbol: | Nasdaq: PGRX
|
| Stock price: | $0.21 at close May 21
|
| Market capitalization: | $15.99 million
|
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