Notes sold at discount along with 100% five-year warrant coverage
By Devika Patel
Knoxville, Tenn., Oct. 5 - Bonanza Goldfields Corp. sold $1.66 million private placement of 30-month 8% secured convertible promissory notes with Tonaquint, Inc. on Oct. 1, according to an 8-K filed Friday with the Securities and Exchange Commission. The notes were sold for $1.5 million, for an original issue discount of $150,000, plus a $10,000 fee.
The notes may be prepaid at 135.
The notes were sold with 100% warrant coverage. The five-year warrants are each exercisable at $0.075, a 50% premium to the Sept. 28 closing share price of $0.05.
The gold mining company is based in Phoenix.
| Issuer: | Bonanza Goldfields Corp.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $1.66 million
|
| Maturity: | 30 months
|
| Coupon: | 8%
|
| Price: | $1.5 million (original issue discount of $150,000, plus $10,000 fee)
|
| Call: | At 135
|
| Warrants: | 100% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.075
|
| Investor: | Tonaquint, Inc.
|
| Fees: | $10,000
|
| Settlement date: | Oct. 1
|
| Stock symbol: | OTCBB: BONZ
|
| Stock price: | $0.05 at close Sept. 28
|
| Market capitalization: | $12.19 million
|
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