Raising money....up to $5 mil-
Hi Ho hopes for $5-million preferred offering
2013-08-09 09:42 ET - News Release
Mr. Dennis McKnight reports
HI HO SILVER RESOURCES INC. OFFERS PARTICIPATING CONVERTIBLE REDEEMABLE SERIES "A" PREFERRED SHARES MINIMUM $500,000 MAXIMUM $5,000,000
Hi Ho Silver Resources Inc. is offering up to five million participating convertible redeemable Series A preferred shares. Net proceeds will be used to conduct one or more bulk sampling programs on Hi Ho's 100-per-cent-owned Fairview gold property, near Oliver, in the Okanagan Valley of Southern British Columbia, Canada. The subscription price is $1 per Series A preferred share with a minimum financing of $500,000 and a maximum financing of $5-million. The company may elect to offer up to 80 per cent of the offering on a flow-through basis. All Series A preferred shares will carry a participating dividend of 50 per cent of the gross net margins payable quarterly until participating dividends equal to the issue price have been earned by each Series A preferred share. At that time, the dividend will be set at 40 per cent per annum.
Each Series A preferred share will be convertible into that number of common shares equal to the quotient of (i) the issue price plus accrued and unpaid dividends per preferred share divided by (ii) the greater of (a) five cents and (b) 80 per cent of the average of the closing prices of the common shares during the 10 trading days immediately preceding the notice of conversion.
The Series A preferred shares and any common shares, into which they may be converted, may only be resold or transferred in accordance with all applicable legislative and regulatory rules, restrictions and policies.
The offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals. Finders' fees may be paid in certain instances.