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MustGrow Biologics Corp. Announces Significant Financing Plan and Corporate Updates

Strategic Insights

— 1 min read

MustGrow Biologics Corp., a fully-integrated provider of innovative biological and regenerative agriculture solutions, has announced a non-brokered private placement of up to 4,285,715 units at $0.70 per unit, aimed at raising up to $3,000,000 in gross proceeds. The company plans to use the net proceeds for inventory production, working capital, and general corporate purposes. Additionally, MustGrow has proposed the repricing of outstanding share purchase warrants and intends to offer shares for debt settlement to holders of unsecured convertible debentures.

Key Takeaways:

  • The LIFE Offering will consist of up to 4,285,715 units at $0.70 per unit, raising up to $3,000,000 in gross proceeds.
  • The company plans to use the net proceeds for inventory production, working capital, and general corporate purposes.
  • The proposed Warrant Repricing will involve the repricing of 1,721,610 outstanding common share purchase warrants to an exercise price of $0.90 per Share.
  • The company intends to offer shares for debt settlement to holders of unsecured convertible debentures, settling up to $2,585,000 in outstanding principal amount.
  • The Settlement Shares will be subject to a statutory hold period expiring four months and one day from the date of issuance.
  • The LIFE Offering and Warrant Repricing are subject to TSXV approval, and the company expects to rely on exemptions from formal valuation and minority shareholder approval requirements under MI 61-101.
  • The company has approximately 52.4 million common shares issued and outstanding and 59.4 million shares fully diluted.

Statistics:

  • Up to 4,285,715 units will be sold at $0.70 per unit, raising up to $3,000,000.
  • The proposed Warrant Repricing involves 1,721,610 outstanding common share purchase warrants with an exercise price of $1.90 and an expiry date of January 16, 2030.
  • Up to $2,585,000 in outstanding principal amount may be settled through shares for debt settlement.
  • The Settlement Shares will be subject to a statutory hold period expiring four months and one day from the date of issuance.

Sources:

  • SEDAR+
  • TSX Venture Exchange

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