The settling of debt is often seen as a major positive for companies and brings the stocks into sharp focus as well. Hence, following the announcement from the company on April 5, it is likely that Prismo Metals Inc. (OTC:PMOMF) could come into focus among investors this morning. Last Friday, the company announced that it had been successful in settling debts with some of its creditors. In connection with the debt settlement, Prismo Metals issued a total of 2,833,690 common shares to the creditor for a price of $0.17 each.
The shares made up the full and final settlement of the accrued and outstanding debts, which stood at a total of $481,727. However, the company also noted in its news release that the securities that had been issued as part of the debt settlement were going to be subject to a holding period of four months from the day of issuance. The Executive Chairman of the company, Alain Lambert, stated that close to 60% of the issued shares had been turned over to the Mexico-based exploration services company, Prospeccion y Desarrollo Minero del Norte SA de CV. The Chief Executive Officer and President of Prismo Metals, Dr. Gibson, controlled Prospeccion y Desarrollo Minero del Norte.
However, that was not all. Prismo Metals also announced that it had been successful in completing the previously announced non-brokered private placement for a solitary subscription of 754,111 units in the company for the price of $0.17 each. The company managed to raise gross proceeds to the tune of C$128,250 from the private placement. Each unit was made up of one common share in the company and one common share purchase warrant. A whole warrant could be exercised to pick up a common share for the exchange price of $0.25 for a period of 24 months.
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