SustainCo lists C$5.08 million debentures; proceeds fund acquisitions

By Lisa Kerner

Charlotte, N.C., May 5 – SustainCo Inc. is listing previously announced debentures, with total proceeds of C$5,075,000, on the Canadian Securities Exchange (CSE) as ticker symbol SMS.DB.

They will begin trading on May 7, according to a company news release.

The debentures bear interest at 12% per annum and have a maturity date that is five years following the closing of the debt offering.

SustainCo may redeem the debentures after 24 months.

Proceeds will be used for targeted acquisitions and general working capital purposes, the company said.

The proceeds of the debt offering consist of the consolidation of new debt with $500,000 of pre-existing company debt assumed from Urban Mechanical Contracting Ltd. as part of SustainCo’s sale of Urban Mechanical in December of 2013.

In June 2014, SustainCo completed a non-brokered private placement of the units.

Each unit is comprised of a $1,000 principal amount secured debenture and 100 common share purchase warrants.

Each warrant is exercisable for one common share at an exercise price of $0.25 for 36 months.

SustainCo is a Toronto-based provider of sustainable infrastructure solutions and services.

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