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Replies to post #81554 on Pacific Gold Corp fka PCFG
03/16/12 9:55 PM
3/1/2007 4:00:00 PM ET
PCFG Completes $2.4 Million Debenture Issue
TORONTO, March 1, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Pacific Gold Corp. (OTCBB: PCFG) announced today that it has closed a $2.4 million debenture issue.
On February 26, 2006, the Company sold $2,440,000 in an aggregate principal amount of 2 year convertible debentures ("Debentures") and warrants for an aggregate payment to the Company of $2,166,000 after fees and expenses. The Debentures are due February 26, 2009 and are convertible into common shares at a conversion price of $0.18 per share subject to change in various circumstances. The Company intends to use the proceeds for the Nevada Rae Gold Black Rock Canyon Mine upgrades, exploration activities, and general working capital purposes.
PCFG has used some of the proceeds from the new issue to retire the debentures previously issued to Palisades Master Fund, LLC. Palisades had originally purchased a face value note of $4.5 million in April 2006. To date Palisades had converted $1.8 million into equity. The remaining $2.7 million note was retired for $540,000.
In conjunction with the financing Crescent International which holds a $1.6 million convertible note also from April 2006, agreed to exercise 800,000 warrants for a reduced price of $0.20 (previously $0.30) per share for a total of $160,000. These funds are being applied to working capital.
The SEC sued hedge fund managers Paul T. Mannion, Jr. and Andrews S. Reckles in federal court in Georgia, alleging that they defrauded investors in Palisades Master Fund L.P. The commission said Mannion and Reckles misled investors and inflated their management by overvaluing the securities of penny stock companies that they placed in a so-called "side pocket." The SEC said they also diverted more than $1.5 million in warrants from those investments to themselves instead of the investment fund, and took an additional $2 million from the fund for their own use. The SEC is asking the court to award damages, disgorgement of any illegal profits and an injunction against securities laws violations.
03/17/12 5:27 AM
AI
