Business
U.S. Gold Corp. Announces Closing of $2.5 Million Registered Direct Offering
ELKO, Nevada, June 20, 2019 /PRNewswire/ -- U.S. Gold Corp. ("U.S. Gold" or the "Company") (NASDAQ: USAU), a gold exploration and development company,
About this update from U.s. Gold Corp.
[{"type":"text","content":" ELKO, Nevada, June 20, 2019 /PRNewswire/ -- U.S. Gold Corp. (\"U.S. Gold\" or the \"Company\") (NASDAQ: USAU), a gold exploration and development company, announced today that it has agreed to sell, in a non-brokered offering, $2.5 million in Series F Preferred units (a \"Unit\"), each Unit consisting of one (1) share of 0% Series F Preferred Stock and 878 Class X Warrants. Each Unit will be sold at a negotiated price of $2,000 per Unit. Each Series F Preferred Stock at the option of the holder at any time is convertible into the number of shares of our common stock determined by dividing the $2,000 stated value per share of the Series F Preferred Stock by a conversion price of $1.14 per share, subject to adjustment. Each Class X Warrant is exercisable to acquire one share of common stock (each, a \"Warrant Share\") and one Class Y Warrant at an exercise price of $1.14 for a period of six (6) months from the date of issuance. Each Class Y Warrant is exercisable to acquire one Warrant Share at an exercise price of $1.14 per share, commencing six (6) months from the date of issuance (the \"Initial Exercise Date\") and will expire on a date that is the five (5) year anniversary of the Initial Exercise Date. The sale of the Units was priced at parity to the closing price of U.S. Gold common shares on June 19, 2019.\nThe net proceeds, after estimated expenses of the offering payable by the Company, will be approximately $2.425 million. The Company expects to use the net proceeds from the offering for general corporate purposes, which may include working capital, capital expenditures and other corporate expenses, although the Company does not have any current plans, agreements or commitments at this time. No placement agent or broker dealer was used or participated in the offering of the Units.\nU.S. Gold Corp. President and CEO Edward Karr stated, \"We believe our ability to raise funds at parity to the Market supports the optimism that many of our shareholders share with management about the prospects of our two assets. We intend to use the net proceeds to advance our drilling and exploration program.\" \nThe Class X Warrants have a six-month term and provide a 'green shoe' to the Investors for up to an additional $1.25 million to the Company.\nThe offer and sale of the 0% Series F Preferred Stock, Class X Warrants, Class Y Warrant...