Company sells one-year 5% convertibles along with two-year warrants
By Devika Patel
Knoxville, Tenn., Feb. 21 - Star Gold Corp. settled a $250,000 private placement of convertible debentures on June 18, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The 5% convertible debentures are due in one year and convert to common stock at $0.30 per share, which is identical to the June 15 closing share price. The company may force conversion.
Investors also received 100% warrant coverage. The warrants are each exercisable at $0.75 for two years. The strike price is a 150% premium to the June 15 closing share price.
Proceeds will be used for drilling and general corporate purposes.
Star Gold is a gold explorer based in Coeur d'Alene, Idaho.
| Issuer: | Star Gold Corp.
|
| Issue: | Convertible debentures
|
| Amount: | $250,000
|
| Maturity: | One year
|
| Coupon: | 5%
|
| Conversion price: | $0.30
|
| Call: | Yes
|
| Warrants: | 100% coverage
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $0.75
|
| Settlement date: | June 18
|
| Stock symbol: | OTCBB: SRGZ
|
| Stock price: | $0.30 at close June 15
|
| Market capitalization: | $4.26 million
|
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