DENVER, Nov. 8, 2012 /PRNewswire/ -- Prospect Global
Resources, Inc. (NASDAQ: PGRX) announced today that it has priced
an offering of 15,000,000 shares of its common stock to the public
at $1.75 per share. The gross
proceeds to the Company from the offering are expected to be
$26,250,000 million, and the net
proceeds are expected to be approximately $24,295,000 million, after deducting underwriting
discounts and commissions and other estimated offering
expenses. The underwriters will have a 30-day option to
purchase up to an additional 15% of the offered amount of common
stock from the Company at the offering price, less
underwriters' discounts and commissions, solely to cover
overallotments.
The closing of the offering is expected to take place on or
about November 14, 2012, subject to
the satisfaction of customary closing conditions.
The Company intends to use the net proceeds from this offering
(i) to finance the final step in preparation for a final bankable
feasibility study due in the first half of 2013, including an
in-field drilling program, (ii) to fund a portion of debt payments
due to The Karlsson Group Inc. in connection with the closing of
the Company's acquisition of The Karlsson Group Inc.'s 50% interest
in American West Potash LLC, and (iii) for mine planning,
permitting, engineering activities, an environmental study, and
general corporate purposes.
Dahlman Rose & Company, LLC,
and Macquarie Capital (USA) Inc.
are acting as joint book-running managers for the offering. Roth
Capital Partners, LLC and Sterne, Agee & Leach, Inc. are acting
as joint lead managers.
The offering is being made by way of a shelf registration
statement which has been declared effective by the Securities and
Exchange Commission ("SEC"). A copy of the prospectus
supplement incorporating the base shelf prospectus relating to the
offering may be obtained by contacting the underwriters (at the
addresses below) or by accessing the SEC website, www.sec.gov.
Dahlman Rose & Company,
LLC
Attn: Prospectus Dept.
1301 Avenue of the Americas, 44th Floor
New York, NY 10019
Phone: 212-702-4521
Fax: 212-920-2952
Email: prospectus@drco.com
Macquarie Capital (USA)
Inc.
Attn: Prospectus Dept.
125 West 55th Street, 22nd Floor
New York, NY 10019
Phone: 888-268-3937
Fax: 212-231-1717
Email: us.prospectus@macquarie.com
This news release shall not constitute an offer to sell or
the solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which the offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. The securities being offered have not been approved
or disapproved by any regulatory authority, nor has any such
authority passed upon the accuracy or adequacy of the preliminary
prospectus supplement, the base prospectus or the Company's shelf
registration statement. A registration statement relating to the
securities has been filed with the SEC and became effective
May 25, 2012. A preliminary
prospectus supplement relating to the offering has been filed with
the SEC.
With the exception of historical matters, the matters
discussed in this press release include forward-looking statements
that involve risks and uncertainties that could cause actual
results to differ materially from projections or estimates
contained herein. Such forward-looking statements include
statements regarding future sales of common stock and the use of
proceeds from such sales. Factors that could cause actual results
to differ materially from projections or estimates include, among
others, potash prices, economic and market conditions, as well as
the additional risks described in our filings with the SEC,
including our Annual Report on Form 10-K for the year ended
March 31, 2012, as amended. Most of
these factors are beyond the Company's ability to predict or
control. The forward looking statements are made as of the date
hereof and, except as required under applicable securities
legislation, the Company does not assume any obligation to update
any forward-looking statements. Readers are cautioned not to put
undue reliance on forward-looking statements.
About Prospect Global Resources, Inc.
(PGRX):
Prospect Global Resources, Inc. is a
Denver-based company engaged in
the exploration and development of a large, high-quality potash
deposit located in the Holbrook
Basin of eastern Arizona.
SOURCE Prospect Global Resources, Inc.