Encanto Potash Corp. (TSXV:EPO) announced a private placement of 5% secured convertible debentures for gross proceeds of CAD 7,000,000 on January 8, 2013. The debentures are convertible in whole or in part at the option of the investors into common shares of the company at a conversion price of CAD 0.25 per share for a period of two years from the date of issuance. The company may pay finders' fee of 5% of the gross proceeds raised in the transaction. The transaction is subject to acceptance for filing by the TSX Venture Exchange.

On January 14, 2013, Encanto Potash Corp. closed the transaction. The debentures will mature on January 14, 2015. Individual investor Hamad Al-Wazzan subscribed for convertible debentures for gross proceeds of CAD 5,000,000. As a part of the transaction Hamad Al-Wazzan joined company's board of directors. The securities issued in the transaction are subject to a four month hold period. The transaction saw participation from three placees. The company paid a finder's fee of CAD 300,000 to Horgen Holdings Inc.