Home > Boards > Free Zone > User's Groups > Clients of Fairhills Capital

LBSR Liberty Star Uranium & Metals Corp.

Public Reply | Private Reply | Keep | Last Read

	crowin			Sunday, August 26, 2012 1:07:53 PM
	Re: None			Post # of 243

LBSR Liberty Star Uranium & Metals Corp.

James Briscoe CEO

Auditor/Accountant
Semple, Marchal & Cooper, LLP
2700 North Central Ave
Ninth Floor
Phoenix, AZ, 85004

Legal Counsel
Not Available

Transfer Agent: Nevada Agency & Trust Company
http://www.otcbb.com/profiles/LBSR.htm

Form S-1

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8655731

http://www.otcmarkets.com/stock/LBSR/company-info

added note

USE OF PROCEEDS

We will not receive any proceeds from the sale of Shares by the selling stockholder. However, we will receive proceeds from the sale of securities pursuant to the Investment Agreement. The proceeds received from any “Puts” tendered to Fairhills under the Investment Agreement will be used for payment of general corporate and operating expenses.

DILUTION

The sale of our common stock to Fairhills in accordance with the Investment Agreement will have a dilutive impact on our shareholders. As a result, our net loss per share could increase in future periods and the market price of our common stock could decline. In addition, the lower our stock price is at the time we exercise our put option, the more shares of our common stock we will have to issue to Fairhills in order to drawdown pursuant to the Investment Agreement. If our stock price decreases during the Pricing Period, then our existing shareholders would experience greater dilution.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8655731#FORMS1_HTM_PAGE_14