Alpha Capital today filed 13G showing 9.99% ownership (maximum allowed) per their convertible agreement. Full conversion would see them exceed this limit.
6,719,404 shares of Common Stock
basically, now we just watch to see if/when those shares are sold. as of now, they haven't entered the float. volumes will tell.
On August 14, 2009, Liberty Star Uranium & Metals Corp. (the “Company”) completed the sale of $589,177 principal amount of 12% Secured Convertible Promissory Notes (the “Notes”) to five subscribers pursuant to the terms of a subscription agreement between the parties dated as of August 14, 2009 (the “Subscription Agreement”). Offering proceeds are intended to be used for mineral lease payments, offering expenses and working capital.
Pursuant to the terms of the convertible secured notes and the Subscription Agreement, interest accrues on the Notes at a rate of 12% per annum commencing on the date of the issuance of the Notes. The Note principal must be repaid commencing February 15, 2010 in monthly amounts equal to 20% of the principal amount of the Note together with interest, accrued to each monthly payment date on the outstanding Note principal. In the event a registration statement is effective or Common Stock may be immediately resold by the Noteholder without volume or other restrictions, and an Event of Default (as defined in the Note) is not pending then the Company may pay the monthly amount with registered common stock or 144 Shares valued at the lesser of the fixed conversion price of $0.0025 (subject to certain adjustments), or 75% of the average of the closing bid prices of the Company’s common stock for the five trading days prior to the monthly payment date. The Company agreed to reserve for issuance to the subscribers not less than 175% of the amount of Shares of Common Stock necessary to allow conversion of all Notes at the conversion price in effect from time to time.
The Company may, in any event, elect to pay the monthly amount in cash at 110% of the principal amount due and 100% of all other amounts then due. The Company must provide 10 days notice of whether payment will be made in cash or with stock. If the notice is not timely given, the Noteholder shall have the option to elect to be paid in cash or common stock. Each monthly payment in kind will be limited to not more than 75% of the aggregate daily trading volume of the Common Stock for the 5 trading days preceding the relevant monthly payment date. Provided an Event of Default is not pending, the Company may prepay unconverted portions of the Note upon 20 days prior notice during which time Investor may convert the amount of Note noticed for prepayment at the Fixed Conversion Price. Such payment shall be equal to 125% of the principal amount being prepaid and the accrued interest.
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