Liberty Star Uranium and Metals Corp (LBSR)

[gitreal]

http://www.sec.gov/Archives/edgar/data/1172178/000149315220001372/ex10-1.htm

Have fun reading the terms, they are quite detailed. It looks like there is a prepayment clause, probably pretty standard for a convertible loan:

Prepayment Period Prepayment Percentage
1. The period beginning on the Issue Date and ending on the date which is thirty (30) days following the Issue Date. 100%
2. The period beginning on the date which is thirty-one (31) days following the Issue Date and ending on the date which is sixty (60) days following the Issue Date. 105%
3. The period beginning on the date which is sixty-one (61) days following the Issue Date and ending on the date which is ninety (90) days following the Issue Date. 110%
4. The period beginning on the date that is ninety-one (91) day from the Issue Date and ending one hundred twenty (120) days following the Issue Date. 115%
5. The period beginning on the date that is one hundred twenty-one (121) day from the Issue Date and ending one hundred fifty (150) days following the Issue Date. 120%
6. The period beginning on the date that is one hundred fifty-one (151) day from the Issue Date and ending one hundred eighty (180) days following the Issue Date. 125%

After the expiration of one hundred eighty (180) days following the Issue Date, the Borrower shall have no right of prepayment.

And at the Maturation date, if the loan has not been converted by the lender by then (and it will be), the loan is payable in cash, not in shares. The terms are 8% interest, and if not paid fully, any remainder accrues at 22% interest.

The lender will convert before the Maturation date, why would they wait that much longer and only make 8% interest when they can convert at a 25% discount?