Didn't see this coming. But terms seem very good and much better than similar $3M PP done just a fews months ago. What are they going to use the $4.5 million for? Not against this financing but I thought we'd be internally financed, at least in the immediate term. Any ideas?
Mr. John Key reports
GRYPHON GOLD CLOSES $4.479 MILLION PRIVATE PLACEMENT OF UNITS
Gryphon Gold Corp. has closed a $4,479,000 (Canadian) private placement of 4,479 units at a price of $1,000 (Canadian) per unit. The offering was led in Canada by Acumen Capital Finance Partners Ltd. and by Roth Capital Partners LLC in the United States. Each unit consists of $1,000 (Canadian) principal amount of 10-per-cent secured subordinated debentures and 750 warrants. Each warrant is exercisable for one share of common stock of the company an exercise price per warrant of 40 U.S. cents. The warrants expire on May 22, 2013.
The proceeds received by the company from the sale of the debentures shall be for working capital and general corporate purposes.
The debentures will bear interest from the date of issue at 10 per cent per year, payable quarterly on March 31, June 30 and Sept. 30 of each year, commencing on March 31, 2012. The debentures will mature one year from the closing date of the offering. The debentures will not be listed on the Toronto Stock Exchange.
Except in certain circumstances related to a change of control of the company, the debentures will not be redeemable. In the event of a change of control, the debentures may be redeemable at a price equal to 110 per cent of the principal amount plus accrued and unpaid interest.
We seek Safe Harbor.