8% debt due June 28, 2021 comes with warrants for 15 million shares
By Devika Patel
Knoxville, Tenn., July 23 – Ironwood Gold Corp. completed a $500,000 secured convertible debt financing on July 16, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The 8% debt matures in three years. The debt converts to common stock at $0.15 per share. The conversion price is a 50% premium to the July 15 closing share price of $0.10.
Investors also received warrants for 15 million shares. Each warrant is exercisable at $0.001.
Of the warrants, 6 million warrants are vested immediately and an additional 4.5 warrants vest on July 16, 2016 if more than $370,000 of debt remains unpaid. An additional 4.5 million warrants will vest on July 16, 2017 if more than $185,000 of debt remains unpaid.
The silver and gold explorer is based in Ashcroft, B.C.
| Issuer: | Ironwood Gold Corp.
|
| Issue: | Secured convertible debt
|
| Amount: | $500,000
|
| Maturity: | Three years
|
| Coupon: | 8%
|
| Conversion premium: | 50%
|
| Conversion price: | $0.15
|
| Warrants: | For 15 million shares
|
| Warrant strike price: | $0.001
|
| Settlement date: | July 16
|
| Stock symbol: | OTCBB: IROG
|
| Stock price: | $0.10 at close July 15
|
| Market capitalization: | $57,240
|
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