Searchlight Minerals Corp. announced that it has received $4 million in funding from Luxor Capital Group, LP and other investors.
On September 18, 2013, Searchlight Minerals Corp. closed the transaction. The transaction was co-led by Luxor Capital Group, LP and Martib Oring. The company received $4,000,000 in this transaction from a total of sixteen investors. The company intended to receive minimum proceeds of $2,600,000 and maximum proceeds of $5,000,000. The transaction included participation from accredited investors including, Luxor Capital Group, LP. for $2,600,000; of which $621,000 were invested through Luxor Wavefront, LP, $1,911,000 were invested through Luxor Capital Partners, LP, and $68,000 were provided through OC 19 Master Fund, L.P.-LCG, Martin Oring, Director, Chief Executive Officer, and President of the company, and certain affiliates of him participated for $235,000, Richard Gunther for $200,000, and other investors. The notes will mature on September 18, 2018. The company also issued options to the investors to Luxor Capital Partners, LP, Luxor Wavefront, LP, and other funds managed by Luxor Capital Group, LP to acquire convertible notes worth $286,650, $93,150, and $10,200 respectively. The options will be exercisable from September 18, 2013 and expire on September 18, 2014. The company issued securities pursuant to exemption provided under Regulation D. The company did not pay any commissions or broker's fees. Baker & Hostetler LLP acted as a legal advisor to the company. Akin Gump Strauss Hauer Feld LLP acted as a legal advisor to the investor. The company shall pay fees and expenses of the legal advisor of the investor. The note holders have the right to purchase pro rata up to $600,000 of additional separate notes on or before September 18, 2014, on the same terms and conditions as the original notes. The note holders also may elect to have their Notes redeemed by the Company at par beginning September 18, 2015.