Prospect Global Resources Inc. (NASDAQ: PGRX) announced today that it
has priced an underwritten public offering of 41,666,700 units at $0.12
per unit. The gross proceeds to the Company from the offering are
expected to be $5 million, and the net proceeds are expected to be
approximately $3.25 million, after deducting underwriting commissions
and other estimated offering expenses. Each unit consists of one share
of common stock, one Series A Warrant to purchase one share of common
stock, and one Series B Warrant to purchase one share of common stock
and one additional Series A Warrant. The underwriters will have a 30-day
option to purchase up to an additional 1,173,190 shares of common stock
and/or warrant units consisting of one Series A Warrant and one Series B
Warrant at the offering price, less underwriting commissions, solely to
cover overallotments.
The closing of the offering is expected to take place on or about June
26, 2013, subject to the satisfaction of customary closing conditions.
Roth Capital Partners, LLC is acting as the sole manager for the
offering.
The offering will be conducted via an existing effective shelf
registration statement. An electronic prospectus supplement relating to
the offering has also been filed with the SEC and is available on the
SEC’s website at http://www.sec.gov.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which the offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any such state or jurisdiction. The securities
being offered have not been approved or disapproved by any regulatory
authority, nor has any such authority passed upon the accuracy or
adequacy of the preliminary prospectus supplement, the base prospectus
or the Company's shelf registration statement.
Regarding Forward-Looking Statements
With the
exception of historical matters, the matters discussed in this press
release include forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
projections or estimates contained herein. Such forward-looking
statements include statements regarding current and future
classification of Prospect Global’s potash resources and development of
its potash resources and potash mining facility. Factors that could
cause actual results to differ materially from projections or estimates
include, among others, potash prices, economic and market conditions,
and the additional risks described in Prospect Global's filings with the
SEC, including Prospect Global's Annual Report on Form 10-K for the year
ended March 31, 2012. Most of these factors are beyond Prospect Global's
ability to predict or control. The forward-looking statements are made
as of the date hereof and, except as required under applicable
securities legislation, Prospect Global does not assume any obligation
to update any forward-looking statements. Readers are cautioned not to
put undue reliance on forward-looking statements.
About Prospect Global Resources Inc.
Prospect
Global Resources Inc. is a Denver-based company engaged in the
exploration and development of a potash mine located in the Holbrook
Basin of eastern Arizona. Prospect Global’s stock is traded on the
NASDAQ Capital Market under the ticker symbol PGRX.
Additional details about Prospect Global Resources Inc. can be viewed
at the Company’s website, www.prospectgri.com.
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