Company sells 12% six-month notes with five-year warrants to Redwood
By Devika Patel
Knoxville, Tenn., April 21 - Rimrock Gold Corp. settled a $100,000 private placement of 12% convertible promissory notes with Redwood Fund LP on April 14, according to an 8-K filed Monday with the Securities and Exchange Commission.
The notes mature in six months and are convertible into common shares at $0.075 per share. The conversion price is a 6.25% discount to the April 11 closing share price of $0.08. The notes may be prepaid at 110 with the prepayment fee issued in warrants.
Redwood also received warrants for 100,000 common shares. The warrants are each exercisable at $0.10 for five years. The strike price is a 25% premium to the April 11 closing share price.
The investor may invest a further $150,000 and receive additional warrants for 150,000 shares.
The gold and lithium explorer is based in Las Vegas.
| Issuer: | Rimrock Gold Corp.
|
| Issue: | Convertible promissory notes
|
| Amount: | $100,000
|
| Maturity: | Six months
|
| Coupon: | 12%
|
| Conversion price: | $0.075
|
| Call: | At 110
|
| Warrants: | For 100,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.10
|
| Investor: | Redwood Fund LP
|
| Settlement date: | April 14
|
| Stock symbol: | OTCBB: RMRK
|
| Stock price: | $0.08 at close April 11
|
| Market capitalization: | $2.55 million
|
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