Offering includes five-year warrants for 3.84 million common shares
By Devika Patel
Knoxville, Tenn., June 6 - Texas Rare Earth Resources Corp. said settled a second tranche of a private placement of stock on May 31, raising $7.6 million, according to an 8-K filed Monday with the Securities and Exchange Commission. The deal raised $2 million on Feb. 9 for a total of $9.6 million.
The company sold 800,000 common shares at $2.50 apiece in the first tranche and 3.04 million shares in the second. The price per share is a 28.57% discount to the Feb. 8 closing share price of $3.50.
The investors also received five-year warrants for an additional 3.84 million shares, which are each exercisable at $2.50. The strike price also represents a 28.57% discount to the Feb. 8 closing share price and the investor may receive 3.2 million more warrants in future tranches.
Houston-based Texas Rare Earth is developing a rare earth-beryllium-uranium property in Texas.
| Issuer: | Texas Rare Earth Resources Corp.
|
| Issue: | Common shares
|
| Amount: | $9.6 million
|
| Shares: | 3.84 million
|
| Price: | $2.50
|
| Warrants: | For 3.84 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.50
|
| Settlement date: | Feb. 9 (for $2 million), May 31 (for $7.6 million)
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| Stock symbol: | Pink Sheets: TRER
|
| Stock price: | $3.25 at close Feb. 9
|
| Market capitalization: | $165.49 million
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