Potash Ridge Corp. (TSX:PRK) announced that it raised $20 million after successfully closing the initial public offering (IPO) of its common shares. Most of the money raised will go towards developing the company’s Utah-based Blawn Mountain sulphate of potash project. The company also entered a private placement with Sprott Resource Partnership.
As quoted in the market news:
In connection with the Offering, Potash Ridge issued 14,944,746 Shares at a price of $1.00 per Share (the “Offering Price”) for gross proceeds of $14,944,746. The Offering is being made through a syndicate of underwriters co-led by National Bank Financial Inc. and Clarus Securities Inc. and including GMP Securities L.P., Scotia Capital Inc., Cormark Securities Inc. and Dundee Securities Ltd. (collectively, the “Underwriters”).
Concurrent with the closing of the Offering, the Corporation issued 5,055,254 units to SRP for gross proceeds of$5,055,254, on a private placement basis. Each unit consists of one non-voting share in the capital of the Corporation (the “Non-Voting Shares”) and one warrant to acquire one Non-Voting Share, exercisable at a price equal to the Offering Price, for a period of two years following the date hereof. The Non-Voting Shares are convertible into Shares on a one-for-one basis under certain circumstances, however the terms of the Non-Voting Shares do not allow SRP to own more than 19.9% of the Shares upon conversion.
Gensource Potash Corporation (TSXV:GSP) is focused on becoming Saskatchewan’s first vertically-integrated potash producer and has developed a unique business plan which will allow it to take advantage of the opportunities that exist in the potash industry.
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