Juan E. Monteverde, a partner at Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of Prospect Global Resources, Inc. (“Prospect Global Resources” or the “Company”) (NasdaqCM: PGRX) for potential breaches of fiduciary duties in connection with their conduct in seeking shareholders’ approval for an amendment to the Company’s Director and Consultant Equity Plan. Specifically, in the Proxy Statement filed by the Company with the Securities and Exchange Commission on August 1, 2013, the Board of Directors recommends that Prospect Global Resources’ shareholders vote to approve an amendment to the Company’s Director and Consultant Equity Plan to increase the number of shares available for issuance under both this Plan and the Company’s Employee Equity Incentive Plan from 8,200,000 and 13,500,000 respectively to a total of 96,700,000 shares. The issuance of the additional shares could have a substantial dilutive effect on the shares of Prospect Global Resources common stock. Request more information now by clicking here: www.faruqilaw.com/PGRX. There is no cost or obligation to you.Faruqi & Faruqi, LLP is a national law firm which represents investors and individuals in class action litigation. The firm is focused on providing exemplary legal services in complex litigation in the areas of securities, shareholder, antitrust and consumer litigation, throughout all phases of litigation. The firm has an experienced trial team which has achieved significant victories on behalf of the firm’s clients. If you own common stock in Prospect Global Resources and wish to obtain additional information and protect your investments free of charge, please visit us at www.faruqilaw.com/PGRX or contact Juan E. Monteverde, Esq. either via e-mail at email@example.com or by telephone at (877) 247-4292 or (212) 983-9330. Attorney Advertising. (C) 2013 Faruqi & Faruqi, LLP. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We are happy to discuss your particular case.
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.