Penny Stock News: America West Resources Completes $4.5 Million Financing and Converts $5 …

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SALT LAKE CITY, UT–(Marketwire – May 4, 2011) – America West Resources, Inc. (OTCBB: AWSR), a domestic compliant coal producer with mining operations in Central Utah, today announced that it has closed its previously reported private placement, raising total gross proceeds of approximately $4.5 million. The terms of the private placement provided for the issuance of 4.5 million shares of common stock offered at $1.00 per share.

New York City-based John Thomas Financial acted as the placement agent for the offering.

In addition, early last month America West Resources filed a Form 8-K with the U.S. Securities and Exchange Commission detailing that it had arranged for the conversion of approximately $5.0 million from debt to equity at a conversion price of $1.00 per share.

Penny Stocks are stocks traded for under $2 and they represent the small cap companies. They trade on the OTCBB so you will not find them on the major stock exchanges. They are very cheap stocks and normally come for businesses needing capital. They are a very risky investment as the business can go under and leave you with a stock worth nothing. However that being said penny stock trading can be a great money maker, and there are numerous traders who make 6 figures and more from them each year.

The best reasons to trade in penny stocks are the fact that they do not require a large initial investment, meaning that they are an affordable investment for many. Penny stocks are cheap. For example if you were to buy 1000 shares in a company with shares at 10 cents, you would only require an investment of $100, whereas if the shares cost $5 you would require an investment of $5000. Penny stocks also have the potential of huge gains, and have been known to rise as much as 1000% daily. Therefore your $100 investment can be worth $1000. This is very unlikely to happen to other stocks from large cap businesses.

 

Article source: http://www.marketwire.com/press-release/america-west-resources-completes-45-million-financing-converts-5-million-debt-equity-otcbb-awsr-1509826.htm