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.
Prospect Global Resources (PGRX) dropped to a one-year low of $1.05 at the close of trading on Friday after the company said it received notice from NASDAQ that it would be suspended from trading on Monday because it had failed to comply with a NASDAQ listing rule that mandates a minimum market value of listed common stock of $35 million. The stock will move to the OTCQB market starting Monday under the same symbol. Prospect Global, which is developing a potash mine in Arizona, announced Friday it had signed an agreement to reduce the cash amount necessary to extinguish its senior secured debt to $15 million from $25 million. The company has filed a registration statement with the Securities and Exchange Commission for a public offering to help fund the payment. Prospect Global has until April 23 to raise the capital to extinguish the debt. Prospect Global has approximately $153.1 million in obligations outstanding to its senior secured lender with a maturity in July 2015, but the $15 million payment will extinguish this amount.