Non-brokered deal offers shares and 0.5 warrants at C$0.12 apiece
By Tali Rackner
Norfolk, Va., Sept. 14 – DuSolo Fertilizers Inc. plans to raise up to C$2.5 million in a non-brokered private placement of stock, according to a press release.
The company will sell units of one common share and one half-share purchase warrant at C$0.12 per unit.
Each whole unit warrant will be exercisable at C$0.18 for three years.
The unit price is a 7.69% discount to the Sept. 11 closing share price of C$0.13 while the warrant strike price is a 38.46% premium.
“Proceeds from this financing will be used for working capital as DuSolo continues to improve its operations and Direct Application Natural Fertilizer product suite,” chief executive officer Darren Bowden said in the release. “Funds will also be used further define the resource at Bomfim, repay the Tembo [Capital Group] bridge loan, as well as begin the exploration program at our new asset, São Roque.”
DuSolo is required to repay the C$750,000 bridge loan due Nov. 19, 2015 from Tembo with the proceeds of any financing which raises more than C$1 million.
DuSolo added that on Sept. 11 Tembo submitted a written proposal under which it intends to participate in a subsequent closing of the private placement by subscribing for C$750,000 of units and to provide a new C$750,000 unsecured convertible loan with a one year term, 10% interest rate, 5% establishment fee and conversion rights into units at Tembo’s option.
The Vancouver, B.C., company produces phosphate-based fertilizers.
| Issuer: | DuSolo Fertilizers Inc.
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| Issue: | Common shares
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| Amount: | Up to C$2.5 million
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| Price: | C$0.12
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| Warrants: | One half-share purchase warrant per unit
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| Warrant expiration: | Three years
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| Warrant strike price: | C$0.18
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| Pricing date: | Sept. 14
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| Agent: | Non-brokered
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| Stock symbol: | TSX Venture: DSF
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| Stock price: | C$0.13 at close Sept. 11
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| Market capitalization: | C$15.64 million
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