Vancouver-Potash One Inc. said June 16 that it has exercised its right (as previously announced on May 13, 2008) to fully subscribe to the initial private placement financing of Potash North Resource Corp. (PON). The company has subscribed for 27 percent of the private placement, which equates to 6,583,850 units at $0.35 per unit, for total consideration of $2,304,347. Each unit consists of one common share and one common share purchase warrant, each warrant exercisable to acquire a further common share at a price of $0.50 per share for two years. As a result of this transaction Potash One holds approximately 13 percent of PON’s outstanding shares. In addition, Potash One holds warrants which, if exercised, could result in Potash One holding 13,167,000 shares of PON, increasing its ownership interest to up to 23 percent of the outstanding shares of PON, assuming no other dilutive securities of PON are exercised. Potash One President and CEO Paul Matysek said “This decision provides the company with a number of attractive options, such as 1) a non-dilutive source of funding for the company, through partial or full monetization of PON shares; and 2) a continued exposure to the conventional mining potash sector while allowing Potash One to focus on developing its large 336,343 acres of solution mining amenable potash lands with particular emphasis on the Legacy Project.” In other news, Potash One on June 17 announced that it has received final approval from the Toronto Stock Exchange to list its common shares on the TSX. Potash One’s shares will trade under the symbol “KCL,” and will began trading at the opening of business June 18.
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