So, this being the big day and all and not even a peep from the company? Doesn't bode well.

I'm following it, but not in it at all right now.

The Karlsson debt has been reduced to 25M from the previous 150M, the apollo debt is reduced to 1.7M from the 7.3M that they owed. This is all contingent upon them paying it in full on March 10th, which they have since said they cannot do and are in the process of obtaining an extension on that.

That's where it stands at this moment.

Sichuan is a mystery. I'm beginning to think they are just a leveraging tool without any real intention of investing in the company.

I'm happy that they are not offering lower than 1.50 as well. Actually, it says a lot that the stock has not dipped below that price with the 1.1M they just raised. In every other instance, whenever more shares were issued, the price immediately dropped significantly below the purchase price. Here, we're holding steady right at it. I think 1.50 may be a level of stability for a while now.

Again, this all depends on how this equity raise plays out as well.

I hope they do succeed.

The area desperately needs the jobs that this project will bring.

Prospectus is out.

17 Million shares being offered to the public.

Although it doesn't say, it's easily calculated that the price will be 1.50$ per share which will net them 25.5M$ should all be purchased.

The real question is, who's going to pony up this cash? I guess we'll find out.

Filing from 2/25

In the "risk factors" section.

As stated in one of the recent filings, they have enough cash to last them through March, that's it.

They'll most likely get an extension as they have every other time. I highly doubt they'll go bankrupt now.

At this point, who knows. If it were me in your position, I would hope for a quick pump and carefully keep your eye on it intra-day to see when buying pressure starts to slow and sell off.

But if you believe that somehow it's going to become profitable for current shareholders even with the impending 20 to 1 R/S, then keep holding.

Also something to mention, this filing confirms that the majority holders(Scott Reiman & affiliates) are still looking to find someone to buy out their positions and they did NOT participate in the 1M equity raise we just had, it was all of the other funds and holders, likely just to average down their positions. This doesn't bode well for me, but others may have a different take of it.

I think the question on everyones' mind is, where is Sichuan in all of this?

Important bit from this SEC

I would set that date before March 10th, because that is when the entirety of their debt is due, so they have to do the offering before then.

Unless of course they obtain an extension.

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.

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.

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.

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.

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.

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.

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.

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

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.

That and their assets probably wouldn't fetch more than what they are trying to get now. So this is still a better option than bankruptcy for them.

True, but it's still an issuance of new shares though which is more dilution. And since all money raised will be through new issuances as per their all equity capital structure, it basically acts the same way.

25M(Karlsson) + 1.7M(Apollo) + ~5-7M(DFS) + unknown amount for other corporate purposes.

So figure 35-40M to take them through the rest of the year.

All of their filings and PR's are found on their website PGRX

As per the 8K just filed, they have obtained an extension to the mineral report requirement as expected. They also say they are in active negotiations for financing. I feel more confident now, however still very cautious with the terms of the financing potentials. It may be a great time to enter, and it also may be too early. It's anyone's guess.

Historically investors react very negatively to any new issuance's of shares to this company, and that is why I'm still very hesitant to hold any position. It's definitely going to be an interesting 5 weeks coming up though.

I feel as if the 2.45 price floor that seems to have been established is purposefully placed. They are probably close to getting at least some short term equity financing and needed a stable base to negotiate terms with. My bet is we'll hear something next week about it. Then again, what that'll do to the price is anyone's guess given the dilution forthcoming.

The amended form filed today:

2 additions I noticed, probably more but one has me worried.

The addition of the line: "We may decide to file bankruptcy if we cannot raise sufficient funds to continue our operations." to page 7

Also they commented about the state of a possible buyout on page 4:

"As of January 30, 2014, the Company is not contemplating a sale of the Company."

I'm staying out until we get some good news at least.

I hope they do succeed, but given the massive future dilution by moving to an all equity capital structure, I just don't know at what point it would even be profitable for regular shareholders.

Could be, but they've already invested so many millions, it makes me wonder why they would be willing to sell at such a loss unless they are going to sell it to another related company and make it back from there, who knows.

Prospects SEC Filings

Click the most recent filing, it's basically saying that Scott Reiman affiliations are attempting to sell their shares & warrants along with various other funds that are selling half of their stake.

I'm less concerned with the price and more concerned with the fact we haven't heard anything from them in a while. We don't really know what's going on other than the fact that they have no money and the Scott Reiman affiliations are selling off their stake in the company. They have basically 5 weeks to get something figured out. The risk here is huge. However, the upside is also great. I'll continue to play the pumps, otherwise I'm staying out until we get some news that legitimately restores my confidence that they will not end in bankruptcy.

In case people hadn't been reading the filings, Very Hungry LLC/Scott Reiman/Hexagon Investments(the financiers up to this point of the project) are offloading their entire position in the company(~51%) including all of their warrants at a massive loss and have been trying since October, but there has been nobody willing to purchase it as of yet. I don't know how this bodes for the project to be honest. I think Prospect is hoping that someone buys their spot and exercises the existing warrants for some funding. Haven't a clue how all this will affect share price for existing holders.

Tried to get back in today, didn't dip into my range. Hopefully tomorrow I'll be able to!

I agree with most of your statements, however with the reformation of the cartel, it should spark investor confidence over the coming months. Granted the company doesn't have but 7 weeks to get the 25M, but I think they will. Just my opinion. How it will affect share price, historically you are absolutely correct, but I believe times(and circumstances) are quite different.

I also feel that since Sichuan was once willing to invest 20M$, that the 25M to extinguish the debt isn't too much of a leap for them to be convinced, should it come down to that. I also don't feel like they would continually make these moves if they felt that the project would become a wash.

I agree, waiting for it to stabilize then I will be getting back in. We have 8 weeks till the payment is due, they are forced to make things happen in a very short window. The question is, how will it be done and will it be advantageous to shareholders.

The question is, where will this lie after the traders who are just in for a quick buck are out of it?

My guess is around the 2.20 mark, Dangler has some stock options at 2.26.

Some things to keep in mind heading into the weekend/next week:

The Uralkali/Belarusian cartel is reforming, this will create stability in the potash market once again and investors will be MUCH more likely to introduce funding to these juniors.

In the previous news releases, there were hints that the off-take agreement will be ammended/redone with Sichuan.

They have 2 months left to field 25M$ to pay off Karlsson. We WILL hear soon about this happening. There is far too much to lose at this point, and they will not be defeaulting.

3.00$ was the old price point, the old bottom, even without the SEVERELY reduced debt load. It may seem expensive at this point because of the tax sell-offs and uncertainty throughout November and December, but this is still VERY cheap, especially considering the circumstances.

You don't want to be stuck selling off right before a big announcement such as an updated off-take agreement or financing. That will be the big "boom" that really takes this off and gives confidence to investors.

Good luck to all.

What on earth is going on? There's been no news

I think that the move to all equity capital is a move to keep them listed on NASDAQ as much as anything else. I believe this could be a sign that they will be getting their extension and ultimately a permanent stay once they raise the 25M$ to eliminate their debt.

It is, it's the 1B$ cost for actually building the mine that is scary to investors. If for some reason potash prices continue to decline, it would take many years to recoup that 1B$ investment even if the mine is profitable. They're waiting for the market to begin a rebound so they know it's hit bottom before pushing projects like these I believe.