Junior miner Gensource Potash Corp., Saskatoon, on Oct. 8 announced its intention to undertake a non-brokered private placement offering of up to $2 million principal amount of 5 percent convertible redeemable unsecured debentures of the company.
The net proceeds are intended to be used to satisfy regulatory capital requirements for its previously announced intention to apply to list its common shares on the AIM Market of the London Stock Exchange plc.
The principal amount of each debenture shall be convertible, for no additional consideration, into common shares of the company at the option of the holder. The company said it has been advised by a number of its insiders, including all of its directors, that they intend to subscribe for debentures pursuant to the offering and their participation is considered a “related party transaction.”