One-year note bears interest at 12%, convertible at 45% discount
By Marisa Wong
Madison, Wis., Sept. 2 – Liberty Star Uranium & Metals Corp. issued a $150,000 convertible promissory note to a single lender on Aug. 26, according to an 8-K filing with the Securities and Exchange Commission.
The one-year note bears interest at 12% per year.
The note may be prepaid, without the holder’s consent, at a cash redemption premium of 140% until Dec. 24 and at a cash redemption premium of 150% from Dec. 24, 2014 to Jan. 23. After Jan. 23 and up to and upon the maturity date, the cash redemption premium is 150% of the principal amount, subject to approval by the noteholder.
The holder will be entitled to convert any unpaid principal plus accrued interest into Liberty Star common shares at a 45% discount to the average of the daily volume-weighted average price for the 10 trading days prior to the conversion date.
The mineral exploration company is based in Tucson.
| Issuer: | Liberty Star Uranium & Metals Corp.
|
| Issue: | Convertible promissory note
|
| Amount: | $150,000
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| Maturity: | Aug. 26, 2015
|
| Coupon: | 12%
|
| Conversion price: | 45% discount to the average of the daily VWAP for the 10 trading days prior to the conversion date
|
| Redemption: | Note may be prepaid, without the holder’s consent, at a cash redemption premium of 140% until Dec. 24 and at a cash redemption premium of 150% from Dec. 24, 2014 to Jan. 23; after Jan. 23 and up to and upon maturity date, cash redemption premium is 150%, subject to approval by the noteholder
|
| Warrants: | No
|
| Settlement date: | Aug. 26
|
| Stock symbol: | OTCBB: LBSR
|
| Stock price: | $0.0137 at close Aug. 29
|
| Market capitalization: | $11.19 million
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