Deal with Southridge will span two years; common shares discounted 6%
By Devika Patel
Knoxville, Tenn., July 30 – El Capitan Precious Metals, Inc. arranged a $1.9 million equity purchase agreement with Southridge Partners II, LP on July 30, according to an 8-K and prospectus supplement filed Wednesday with the Securities and Exchange Commission.
Over the course of two years, the investor will buy common shares in tranches of up to the lesser of $500,000 and 250% of the average daily trading dollar volume of the stock for the 20 trading days preceding the put notice.
The shares will be sold at a purchase price equal to 94% of the average of the two lowest closing bid prices of the stock during the five trading days following a put notice.
Proceeds will be used for working capital and general corporate purposes.
Based in Scottsdale, Ariz., El Capitan is a precious minerals mining company.
| Issuer: | El Capitan Precious Metals, Inc.
|
| Issue: | Equity purchase agreement
|
| Amount: | $1.9 million
|
| Tenor: | July 30, 2016
|
| Price: | 6% discount
|
| Warrants: | No
|
| Fees: | $25,000
|
| Investor: | Southridge Partners II, LP
|
| Pricing date: | July 30
|
| Stock symbol: | OTCBB: ECPN
|
| Stock price: | $0.22 at close July 29
|
| Market capitalization: | $59.29 million
|
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