Salt Lake Potash Limited (ASX:SO4) announced a private placement of 15,000,000 unsecured zero coupon convertible notes to be issued at a price of AUD 1 per note for gross proceeds of AUD 15,000,000 on July 2, 2020. The transaction will include participation from new and existing institutional investors and a new corporate investor, Equatorial Resources Limited (ASX:EQX). The notes will be convertible into equity at the lower of AUD 0.45 per share or a 5% discount to any future equity raising of at least AUD 10,000,000. Incase no equity raising is done for greater than AUD 10,000,000 prior to the maturity date of 30th June 2021, then the convertible notes will be converted at 90% of the average of the five lowest daily VWAPs during the 20 days prior to the maturity date. The conversion period starts September 30, 2020 and end June 30, 2021. The maturity date for the notes is June 30, 2021. The transaction is expected to close on July 6, 2020. The floor price of conversion is AUD 0.30 per share.

On the same date, the company received AUD 10,000,000 from new investor, Equatorial Resources Limited (ASX:EQX) in its first tranche. The conversion of the notes issued to Equatorial Resources Limited (ASX:EQX) are subject to company's shareholder approval at a meeting expected to be held in August 21, 2020.