Prospect Global Resources Inc fka PGRX

[Pike]

I am thinking that after all the debt is cleared and warrants converted we will be looking at between 33 million to 40 million shares. Was thinking that conversion price would be $1.50...

Any thoughts on how they will obtain financing for the mine construction?

[smakkdaddy]

Holy crap this thing is complicated...

http://ir.prospectgri.com/phoenix.zhtml?c=236928&p=IROL-secToc&TOC=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9vdXRsaW5lLnhtbD9yZXBvPXRlbmsmaXBhZ2U9OTQxMTAxNiZzdWJzaWQ9NTc%3d&ListAll=1

No real indicator either as to when this "meeting" is going to take place....

Anybody care to break this thing down?

Without a PR tying all of these endless possibilities together...

Kind of at a loss here...

Too, remember this is my kids money folks...

Too much further south, and we'll have to bail...

Already down about 13%, and am willing to push it to 15-20% in an effort to see how this thing pans out...

But that's all the wiggle room we have...

Your thoughts? Thanks...

PGRX

[smakkdaddy]

Can't wait for the next PR...

I have a feeling it's going to be everything that we've been waiting for, and more...

JMO

GLTA

[smakkdaddy]

Hmmm....Must have a plan to remain listed w/ the big boys, else why would they be concerned about extending the deadline once again?

"On October 23, 2013 we received written notification from The Nasdaq Stock Market that we have not regained compliance during that period and that our common stock would be delisted at the open of business on November 1, 2013. We appealed the delisting determination pursuant to a Nasdaq Hearing Panel. The Panel extended the time for us to regain compliance with the market value of listed securities rule to February 28, 2014. This week the Panel, upon our request, extended that date to March 31, 2014."

http://ir.prospectgri.com/phoenix.zhtml?c=236928&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTk0MTEwMDkmRFNFUT0wJlNFUT0wJlNRREVTQz1TRUNUSU9OX0VOVElSRSZzdWJzaWQ9NTc%3d

Got your position?

PGRX LONG

[smakkdaddy]

Sorry brother, that's an ALL IN at a 1.71 average....

Been here since mid . Dec. remember?

It's all good...

Don't hate, just because I have the courage to stand behind my convictions...

Whatever your plans, good luck and god speed...

Just so damn very proud of myself for not panic selling and holding until this thing unfolds...

PGRX LONG

[vdb_123]

thanks. I still not sure if they can raise that 25million thru public offering. let's wait and see.

[Sryinex]

Simply put, they wouldn't offer those kinds of shares without a buyer in place. They've already failed public offerings in the past and know that they don't work when your shareholder base is less than 50 people. Especially when you have the track record that they do. They've relied on Scott Reiman/Very Hungry to fund them up to this point. They have already told Prospect that they want out. To me, this sounds like they have an alternative source that they've found that wanted these things to happen before they took part.

About Sichuan? Who knows really. This offering will give majority ownership of the company to whoever is willing to pony up the capital. Who it is? We'll have to wait and see.

The conversion of the warrants is a definite positive to take away from all of this however. Which is a reason why I believe they will probably succeed at eventually building the mine or getting bought out.

[Sryinex]

You're in at what price again? 2.50? Feel free to gloat when you're not -40% and the company has actually done something positive for shareholders. Oh wait, they're still down something like 97% from a year prior.

I've never doubted that they would get funding to extinguish this debt as I've said, and I've never really doubted that they would succeed as a company. The doubt(and quite frankly with obvious reason) I've had is how it will affect share price for the common shareholder. The only positive trends this company has had in regards to share price has been through clear cut pump n dumps. No large institutional investors taking stake, no insider purchases, no positive PR, nothing since the PFS was released in July and it was trading at 5.00$+ post r/s value.

You love to mindlessly pump to try to get back your losses that you are still incurring. I hope you do get them back and learn your lesson that throwing money at things without even a basic understanding of how the company operates is equivalent to Russian roulette.

There are still shareholders holding at 50$+ prices praying for a miracle.

[vdb_123]

Why do you guys think they have large buyer of the shares ? They gone thrugh same process last year to raise $12 million but ultimately cancelled the public offering. What is different this time ?

[smakkdaddy]

Awww....Too late!!!

We're already ALL IN, and finally!!! I say Finally!!!

There's some light at the end of the tunnel....

Thank you PGRX!!!

I knew you guys would come up with something!!

GLTA

[Sryinex]

I'm pretty sure they have a buyer lined up as well. But in terms of the pop, you may be right but I just can't take that kind of risk right now.

Tomorrow should be a big indicator of the direction that this is headed.

Good luck to those willing to take the risk.

[Tinkerer]

I just got immediately bullish on PGRX for a couple reasons:

1. They have a plan to pay off their debt. Finally.

2. My guess is they have a rather large buyer lined up to soak up most of the shares in the public offering.

3. Frequently when folks announce beforehand a public offering, investors will drive the price North for about a month while the company awaits SEC approval for the share offering. My guess is that by the time they offer the shares, the price will be back above $2.00/share, and they will offer the shares at about $1.50.

4. Reserving the right to do a reverse split is, in my opinion, less about bringing the share price above $1.00 and more about bringing the share price above $5.00 for the sake of institutional buying.

All in all, I think the scenario is bullish and will yield, especially in the short term, a pop in the share price.

GLTAL.

[Pike]

Wow so they want the option to do a reverse split up until December 2014... they also want to exercise another 10 million conversion of series A warrants to common stock. They also want to propose 25 million stock offering to pay the debt.

No way they get the reverse split before march 10th so they will dilute the shares to get to 35 million market value and then reverse split to get the value over a dollar thus fulfilling all of the Nasdaq requirements. I would imagine Sichuan will pony up the 20 million to finish things out through the definitive feasibility study.

It now looks like we need to pull out and wait for them to dilute with the 25 million and then jump in after the split. What do you guys think?

[Sryinex]

Lol, these filings.

They're proposing(and will get) approval for another reverse split. They're going to be offering 25M$ in new issuances(as expected).

Like I've been saying before, the terms of the issuances are key in determining whether the company will be profitable for the common shareholder.

This has sealed the deal for me. Stay away until after the offering is completed as your value will have a very large chance of decreasing. The game will basically be "reset" after the offering. They will be debt free, but will also be broke. They will need to find more ways to finance the project immediately afterward. It is possible that without the debt overhang that they will be able to field more favorable ways of financing for the common shareholder but that is left to be seen.

[smakkdaddy]

Even a broken clock is right twice a day ~ Idiom, author unknown

Come on PGRX, we're counting on you!!!

PGRX

[Pike]

Any chance we get news today? March 10th is coming up quick....

[smakkdaddy]

Not sure what the rules are, and how much they are going to be able to tell us but...

I shot the investor relations guy an email asking simply, "how's the debt buy down coming along?"

Tried to pry something, anything out of the receptionist, even a general feeling around the office and I got nothin'...

Stone cold she was...

That girl could have been an attorney herself...

And so now we wait for a response from their investor relations guy...

Just like the rest you, on news...

We wait...

Come on PGRX, I've got every penny that my son has earned over the last year invested in the belief that you will come through...

I know you've got this, oh sweet sweet future global potash provider...

PGRX LONG

[smakkdaddy]

Here is the attachment from which I got my theory...

http://www.techsonian.com/stocks-alert-ophthotech-corp-opht-arca-biopharma-inc-abio-prospect-global-resources-inc-pgrx-gold-resource-corporation-goro/12127506/

(Had to jam out the door to the gym and forgot to attach it)

Lookin' good PGRX!!!

[smakkdaddy]

Oh, Ok, now I see what is going on w/ that 700K share issuance...

This is how they are going to pay off their $7 Mill. debt...

Another words, the company whom they owe the 7 mill bucks to is willing to accept those 700K shares at a guaranteed minimum price of 1.5 each...

This means, ultimately IMO, that they are anticipating, with the $25 Mill debt buy down being completed of course, that again IMO, we will have a future share price in excess of $6....

So in essence... They will ultimately receive every penny of their $7 mill back, if not more, guaranteed...(contingent on them holding)...

Glad as hell I didn't panic yesterday...

Just my spin, but it seems to make sense to me...

GLTA

[smakkdaddy]

Appreciate your positive perspectives....

But I'm not that long of a LONG...

Been in since Mid. Dec...

Averaging about 1.72...

So, I've been here before @ and around 1.55+...

Down slightly, but no biggie...

Seems foolish I'm sure, to not have sold at the last two spikes...

But I believe we are headed for much, much bigger things once this whole debt buy down debacle is worked out...

That, and I don't like to talk the talk and not walk the walk...

Congratulations on your entry today BTW...

Hoping nothing but the very best for you and yours...

GLTA

[OSTrader]

I bought this morning in the low 1.50s.

Keep in mind that those of you longs who bought higher, this drop is painful but for new money looking for opportunities, this drop looks attractive and may/will bring in more buying pressure.

Just look at what the stock did today. It steadily gained all day despite the selling pressure. Once the selling is done, I am anticipating a rebound.

Hold tight.

[smakkdaddy]

Well, by your own admission, "what this means, I don't know."

So in my opinion, any permits being pulled for any reason by another Co. on PGRX's land should be a GREAT thing...


Like I said though, no longer speculating, just holding...


Man!! Do we need to get a life or what?

PGRX LONG

[Sryinex]

I didn't mention the 35M because they will most likely achieve this with the issuance of new shares at or around 1.50 to eliminate the debt, thus not as relevant as the share price.

The permits, why are you diggin that? To me, it seems as if it is better for passport, not prospect.

[smakkdaddy]

Not to shoot holes in your theories, but...

Your $1 idea doesn't hold water...

The only thing that will keep us listed at this point is a point price of at least a $1 and a $35 Mill. market Cap...

But as for the permits being pulled...

I'm diggin' the sound of that (no pun intended)...


Not going to be speculating any further on price, whether we're at the bottom, or where we will be going from here...

Don't want to mislead or hurt anyone...

Just going to keep my word and continue to hold until this thing works itself out...

PGRX, Can't wait to see what you guys are up to...

PGRX LONG

[Sryinex]

The price difference in warrants is a clear indicator of desperation.

Here's the deal, the owners of those warrants? Very Hungry LLC/Scott Reiman. He/They have been trying to sell off their entire stake in the company(including the warrants) since October I believe. These guys are the ones who have been funding almost the entire project up until this point.

Instead of selling off their entire stake(most likely they could not find any buyers willing) they most likely offered this deal to Prospect. Reason being: They need to maintain a share price above 1$ to continue NASDAQ listing, at offering at a price of 1.50, there isn't much downside anymore. There are so few shares outstanding that they wouldn't be able to reverse split again, so there will be pressure to maintain that price point. They felt this was the best opportunity for them to make some of their money back.

It's a terrible deal for the common shareholders & the company. Now, there is no margin to offer a reduced price for new issuances of shares to fund the debt elimination. What are they going to do, offer it for 1.25? That's all the room they have.

What options are left for Prospect in these next 3-4 weeks before it's due:

1: Find an outside source to issue 25M+ shares to.
2: Plead with Scott Reiman affiliates to offer another 25M shares to.
3: Grab an extension from Karlsson for the debt payment which only delays #1 and #2.

I have a feeling it's going to come down to #3 in the short term.

If you are confident that the company will find a way, this isn't a bad place to load up. Closing at 1.60$ today really only leaves 0.50$ downside potential unless something happens.

Also, I was reading on another board how Passport is filing for permits relating to some of Prospects land. What that means exactly, I don't know.

On a positive note:

The company now has 1M$ and can use it to finish the updated report due to Karlsson and possibly give incentive to other investors. Keep in mind, they can't fall too far behind on the project.

This is crunch time, these next few weeks are going to be full of risk and potential reward.

[Pike]

I believe they went to the equity capital structure to give them flexibility in generating the 25 million to take care of the debt.

Little concerned on why they forced the series A warrant holders to buy at 1.50 versus 4.05. Also concerned they then offered up more series A Warrant that can be exercised over a five year period with shareholder approval.

It makes since that when you unload 700k in shares that the price would drop like it did and think it should steadily climb as we approach march 10th or they figure out financing.

Whatever happened with the 20 million Sichuan offered up? Maybe they are waiting for the debt to be settled before putting up the cash.

PGRX may have issues with passport now too given how the land is set up in a checker board. One would think they could work something out but that remains to be seen.

Also when PGRX settles the secured debt the shares will be diluted by another 1.3 million dollars in new shares.


Sorry about my post being all over the place, just trying to capture all my thoughts in one post.

[Sryinex]

This is new evidence of exactly how desperate the company has been for cash. And also why common shareholders need to be very wary holding any position with the company. As I outlined before, with this all equity capital system, the price of issuances dictates how much the normal shareholder suffers. I'm going to go out on a limb here and say that finding the 25M will now be very difficult for a lender to take on in equity form given how the price moves with discounted shares.

[smakkdaddy]

News changes everything...

And I'm off to work...

Remember, fear and greed are simply emotions...

The sooner one learns to identify them, and is able to control them...

The sooner one is able to overcome them, and is able to remain objective...

News changes everything...

And GLTA

[All4 BioTech]

Agreed, this company is going in the shltter. Why would they drop the price all the way down to $1.50? They obviously have no one willing to invest in such a poorly ran company.

[Tinkerer]

Thanks for the information.

I have started a very small position here, but hesitate to make it much larger. When you have 20% of the float sold off, down 30%, that does not speak well for the future of the stock. I would be more bullish if the strike price were lowered and no one sold, but it looks like they sold quickly. This tells me the warrant holders were probably complaining to management that they wanted out, since they had a pretty good idea the share price would never hit $4.50.

All in all, it looks like PGRX is done. I took a small gamble, but I highly doubt it will pay off. GLTAL.

[smakkdaddy]

Man I really admire me... :)

"I've only got two things in this world, my balls and my word, and I don't break 'em for nobody" ~ Al Pachino as 'Scarface'

PGRX LONG!!!!

[smakkdaddy]

Ok, so now that that is out in the open, and behind us...

Clearly, there is little else, pending lack of news, that will bring us down from here...

Sounds like the correction that was bound to happen, happened today...

It's all good...

We will wait for news...

Makes no sense to bail now...

If anything, only wish we had more cash...

PGRX

[choo choo trader]

From today's 8K....

Material Modification to Rights of Security Holders, Financial Statement.



Item 3.03. Material Modification to Rights of Security
Holders.

Effective February 11, 2014 we and each of the holders of approximately 720,000 of our Series A Warrants issued in our June 26, 2013 public offering agreed that we would reduce the exercise price from $4.05 to $1.50 in exchange for these warrants being exercised immediately and the issuance of a new Series A Warrant for each warrant exercised with an exercise price of $1.50, exercisable for five years only upon stockholder approval of the exercise. Each of the participating warrant holders entered into a separate Series A Warrant Exercise Agreement in the form filed herewith. The exercise price of our remaining outstanding Series A Warrants automatically adjusted to $1.50 pursuant to the full ratchet anti-dilution terms.

[Caseylm]

There is news about warrants today that explains this big drop. Probably not a bad day to buy since changing unrealistic deals has to be done in this horrible JM market

[lukin4winners]

Could very well be a short to scare some out for cheap shares for mm's watch the cover.

[smakkdaddy]

Just as quick as she declined, she also rises....

Congrats to those of you that are getting in today!!

News on the horizon...

PGRX LONG

GLTA

[Caseylm]

If rise means crashing to 1 .50. Yikes!!

[Pike]

I wonder if today starts the steady rise of the stock price in anticipation of PGRX settling out the debt.

[smakkdaddy]

PGRX give us news!!!

An update, a letter, a diagram, a picture, I mean somethin', anything, damn!!!

Anything to keep your most ardent supporter(s) fighting on your behalf!!

I'm lookin' like the little boy who cried wolf around here without, real, substantial news...

It's time...

You owe it to yourselves and your families, if nobody else to pull this thing together...

Make it happen...

Manifest destiny...

[smakkdaddy]

I'm done pumpin' (for now)....

Sometimes their fantastic, and other times not so much....

(My guess is, homie didn't care to be compared to my dumb ass/or is that just narcissistic?)

But as of late, as we get closer and closer to the deadline, I don't want to be responsible for anyone else's potential loss'....

Fact is, no one here knows what is going to happen...

And that uncertainty is apparently beginning to weed out those that are inherently anxious for news...

I still continue to believe, and won't be going anywhere until this thing gets worked out...

Because if it does, one can easily triple or even quadruple their investment from where we are now within weeks, if not days on that news IMO...

GLTA and we're not going anywhere (yet)

[Pike]

I was taken aback by the drop off today... Definitely seemed like someone was getting the stock to drop to pick up peoples stop losses at cheap prices.

[Sryinex]

Watching that bid floor move today was interesting. I wonder what sparked it, and who was behind it.

[smakkdaddy]

Stop men!!! Do not flee!!!

Courage, foresight and persistence...

Free yourselves from those financial chains that bind you and hold (at least 'till news, damn)...

Oh well, you can lead a horse to water, but you can't make it drink, not even when it's potentially in it's own benefit...

Adios weenie boys and hello contrarians...

PGRX LONG

(and yes I did hold through 2.35, because the more I look at it, the more I am beginning to believe)

[smakkdaddy]

You guys see that 100K on the bid at EOD @ 2.58?

Nice...

That's a $258K bet on PGRX that we'll be moving north from here...

Very, very nice...

Somebody out there knows something...

Or could it just be another brave dumbass (who's loaded) like myself?

Time will tell...

JMO but, secure you position now peeps...

PGRX LONG

[smakkdaddy]

Man I'd hate to speculate...

This is an entirely new program for us, different than any other stock and potential set up, than we've ever been part of before...

Just got extremely lucky and went all in the day before their big PR in mid Dec announcing their potential debt buy down...

Went all in on a day when PGRX was down 20%(and bought at the ask)...

And then they had their PR the next day...

Almost bailed when we were down almost 20%+ @ 1.50, but then...

Re-examined that PR several times and began to connect all of the potential dots, and decided to hold, as I like to do because I believe strongly in investing in under appreciated and/or severely battered companies that are poised for a huge potential comeback....

Believe in your numbers?

I don't know man, but if this thing does come together here in the coming weeks, then anything is possible within the next few years..

[Pike]

Any thoughts on where the price will go once the deal is worked out? I was thinking it would jump to around 8.5. After the mineral report it would go to 20. After the definitive feasibility study it would go to 50-100. Once financing for the mine secured it would jump to 200-300. Once mine opens and profits realized 500. Would expect that 500 prove in 2017.

[smakkdaddy]

Oooh, I like the sound of that....

Not sure where to look, but I'm unable to find any other companies w/ such a tiny share structure, regardless of whether it's 4 mill, or 8...

Besides, when the rest of the folks that work the big boards find out that PGRX is now legit after whatever type of potential deal is worked out, and that we now have many, many years from which to build and grow...

That should bring in all of the investors that we will ever need...

Hate to speculate as to what bringing in new investors will mean to our stock w/ such a tiny share structure...

But suffice to say, it should be a definite portfolio changer, if not a potential life changer, depending upon how much you are willing to risk...

Come on PGRX, let's pull this thing together!!!

[smakkdaddy]

Oooh, I like the sound of that....

Not sure where to look, but I'm unable to find any other companies w/ such a tiny share structure, regardless of whether it's 4 mill, or 8...

Besides, when the rest of the folks that work the big boards find out that PGRX is now legit after whatever type of potential deal is worked out, and that we now have many, many years from which to build and grow...

That should bring in all of the investors that we will ever need...

Hate to speculate as to what it would mean bringing in REAL investors to our stock w/ such a tiny share structure...

But suffice to say, it should be a definite portfolio changer, if not a potential life changer, depending upon how much you are willing to risk...

Come on PGRX, let's pull this thing together!!!

[Pike]

I would hope any shares the dilute with are set to only be exercised at a price of 8.25 and higher

[Sryinex]

Actually, I've made back all of my losses from the most recent 2 pump n dumps. So, I have nothing to be bitter about.

I am not negative, but simply realistic with how they operate and the information that is given to us via filings & press releases. While I hope the company does succeed, I would hate for someone else to get sucked in like I was in the past with no way of making it back. That is why I try to be informative to any inquiries.

Just because the company itself succeeds, does not mean that the existing shareholders will necessarily benefit. This is the main point I try to get across. I think it's very likely that they get the funding to extinguish the debt, but how it is achieved is crucial to making an informed investing decision. If they go about it the same way they have historically done all year, it will be a disaster for shareholders.

If you are willing to take a big risk, more power to you. I just hope people do it with as much education about the current situation as possible. I know there people who lost a much more significant amount than I did(example their entry is 25-50$/share adjusted for post r/s) originally and are still holding their original shares in hopes of a miracle.