Company sells zero-coupon two-year secured convertibles in placement
By Devika Patel
Knoxville, Tenn., Dec. 4 - Southern USA Resources Inc. settled a private placement of $200,000 secured convertible promissory notes on Nov. 29, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal raised $160,000 with an original issue discount of 20%.
The 0% notes are due 2014 and will initially convert to common shares at $0.20 per share. The conversion price, which is a 71.02% discount to the Nov. 28 closing share price of $0.69, will be reduced by 25% if the company fails to deliver at least 700 ounces of gold for refining by Dec. 31.
The West Atlantic City, N.J., company plans to search for mineral deposits or reserves.
Issuer: | Southern USA Resources Inc.
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Issue: | Secured convertible promissory notes
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Amount: | $200,000
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Maturity: | Nov. 29, 2014
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Price: | 20% discount ($160,000)
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Coupon: | 0%
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Conversion price: | $0.20
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Warrants: | No
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Settlement date: | Nov. 29
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Stock symbol: | OTCBB: SUSA
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Stock price: | $0.69 at close Nov. 28
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Market capitalization: | $69.97 million
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