DuSolo Announces Private Placement of C$3.0 Million, 10:1 Share Consolidation and Business Update
May 03 2017 - 11:42PM
DuSolo Announces Private
Placement of C$3.0 Million, 10:1 Share Consolidation and Business
Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 3,
2017) -
NOT FOR
DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
DuSolo Fertilizers Inc. (TSX
VENTURE:DSF) ("DuSolo" or "the Company") is pleased to announce
a non-brokered private placement to raise C$3.0 million (the "Placement") through the
issuance of common shares of the Company ("Shares") at a price of C$0.03 per Share (the
"Issue Price"). The Issue
Price represents the Company's current market price of C$0.03 per
common share.
The Placement will result in the issuance of up to
100,000,000 common shares of the Company.
The Company expects to close the Placement on or
around May 17, 2017, subject to TSX VENTURE approval. Shares sold
pursuant to the Placement will be subject to a four month resale
hold under applicable Canadian securities laws.
Participation in the Placement is open to all
shareholders who held the Company's common shares on May 3, 2017
(the "Record Date"). Each purchaser of Shares
will be required to complete a subscription agreement which
confirms, among other things, the availability of an exemption from
the prospectus requirements of applicable securities laws in
respect of the sale of Shares to such purchaser. Eligible
shareholders wishing to participate in the Placement are invited to
contact the Company to obtain a subscription agreement. In the
event of over-subscription, the Company will determine allocations
between shareholders at its sole discretion. Persons who did not
hold common shares of the Company on the Record Date may also
participate in the Placement.
Giles Baynham, Chief Executive
Officer noted "We are very pleased to announce this financing which
demonstrates the clear support of our existing shareholders as we
come to the end of what has been a difficult period in
re-structuring the business. The Company is looking forward to
continuing to develop its fertilizer market share in Brazil and new
products to add value for all our stakeholders."
Share Consolidation
The Company intends to consolidate its issued and
outstanding common shares on a 10:1 ratio (the "Consolidation"), which will be submitted for approval
by the Company's shareholders at the Company's upcoming annual
general meeting (the "AGM") scheduled for May
18, 2017 (the "Consolidation Resolution"). If
approved by the Company's shareholders, the Consolidation will take
effect shortly after the AGM.
The Placement will close prior to the
Consolidation taking effect, and the Shares issued in the Placement
will be consolidated on the same basis as other common shares of
the Company.
There are presently 242,144,579 common shares of
the Company issued and outstanding. After giving effect to the
proposed consolidation, and assuming that the Placement is fully
subscribed, there will be 35,881,123 common shares issued and
outstanding after the Consolidation takes effect.
Shareholders holding approximately 57% of the
Company's issued and outstanding common shares have confirmed to
the Company that they will vote in favour of the Consolidation
Resolution at the AGM.
Business Update
The Company continues to process its run-of-mine
stockpiles extracted from its Santiago Project and deliver to
customers. Deliveries for the first 3 months of 2017 were 5,678
tonnes of a mixture of 12% and 15% Phosphate ("P2O5") Direct
Application Natural Fertilizer ("DANF").
The Company continues to develop new products,
with testwork aimed at demonstrating improvements in P2O5
solubility, application and agronomic efficiency to increase market
share. The feasibility of producing a granulated product is also
underway. Exploration and engineering work continues as recently
described in the Company's news releases dated November 22, 2016
and March 23, 2017.
The Company has agreed in principle to restructure
its remaining property payments to Quantum Fertilizantes do
Tocantins Ltda. over a period from May 2017 to December 2019. This
will assist the Company's management of its resources and cash flow
over the next 32 months. Further details will be provided as soon
as definitive documentation is executed.
On behalf of DuSolo Fertilizers
Inc.
Giles Baynham, Chief Executive
Officer and Director
Neither the TSX
Venture Exchange Inc. nor its Regulation Service Provider (as that
term is defined in the policies of the TSX Venture Exchange Inc.)
accepts responsibility for the adequacy or accuracy of this press
release.
DuSolo Fertilizers Inc.
ir@dusolo.com
+1 (604) 757 1354
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: DuSolo Fertilizers via Globenewswire
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