...potash play can expect to pay.
2013-03-19 15:36 ET - News Release
Mr. Joshua Bleak reports
PASSPORT POTASH ANNOUNCES CLOSING OF A CONVERTIBLE DEBENTURE FINANCING
Passport Potash Inc. has closed a second tranche of convertible debenture financing.
On March 14, 2013, the company issued an aggregate of $285,000 (U.S.) in convertible debentures having a term until March 14, 2014, and an interest rate of 15 per cent per annum, which shall accrue and be payable on the earlier of the maturity date or the date the entire principal amount of each debenture is converted. The principal amount of the debentures is convertible into shares of common stock of the company at the option of the holder, in whole or in part, at a price of 19 U.S. cents per share until the maturity date. The conversion price of the shares of common stock underlying each debenture is subject to adjustment upon a reclassification or other change in the company's outstanding common stock and certain distributions to all holders of the company's common stock. In addition, each holder of a debenture received five common share purchase warrants for each $1.00 (U.S.) principal amount of debenture, entitling the holder to acquire one share of common stock of the company for each warrant at an exercise price of 19 U.S. cents per share for a period of one year from the date of issuance. The debentures are secured by a first ranking floating charge security on all of the company's assets.
The proceeds from the debenture offering will be used for the preliminary economic assessment and for general working capital.
We seek Safe Harbor.