Potash Ridge Closes First Tranche of Convertible Security Financing

Potash Ridge (TSX:PRK) has closed the first tranche of the convertible security financing transaction with The Lind Partners, previously announced on December 16, 2016.
As quoted in the press release:

Lind advanced to the Corporation U.S.$2,640,000, less a closing fee of U.S.$132,000, in consideration of the issuance of an initial convertible security with a face value of U.S.$3,168,000(the “First Convertible Security”). Lind can increase the funding under the First Convertible Security by an additional U.S.$871,200 during its two-year term.
Concurrently with the issuance of the First Convertible Security, the Corporation also issued to Lind 6,511,326 warrants to acquire common shares, exercisable for 60 months at an exercise price of$0.50 per share.
Subject to certain conditions, the funding agreement also provides for the issuance of a second convertible security on mutual agreement of the Corporation and Lind, in which Lind may fund up to another U.S.$6,200,000. Like the first tranche, Lind can also increase the funding under the second convertible security by up to U.S.$2,046,000.
The proceeds will be used to continue advancement of the Corporation’s Valleyfield Project in Québec and Blawn Mountain Project in Utah, and provides working capital for general corporate purposes for more than 12 months.

Click here to read the full press release.