Progressive Planet Solutions Inc (TSX-V:PLAN) said it has completed its previously-announced private placement, raising gross proceeds of C$1.25 million by issuing 5 million company units at a price of $0.25 per unit.
The cleantech and manufacturing company said proceeds from the offering, along with current cash reserves, were used to pay off $1.3 million in two high-interest bank loans, which were floating-rate loans.
“I am pleased that our total debt is now less than $6.7 million and all of this long-term debt has terms of prime plus 75 basis points,” Progressive Planet Solutions CEO Steve Harpur said in a statement.
"With our new fiscal year starting on May 1, 2023, we are now focused on growing sales and improving efficiencies within our legacy operations while also focusing on bringing a series of new products to market,” he added.
Progressive Planet noted that company insiders, including its CEO, its chief financial officer, and its largest shareholder each invested for 600,000 units of the placement for a total of C$450,000.
Each unit of the private placement consisted of one company common share plus one full warrant exercisable at $0.25 per share for a period of one year from issuance.
The warrants will be subject to acceleration if the company's shares trade above $0.35 for 10 business days after the four-month hold expires on August 28, 2023, Progressive Planet said.
Finder's fees of $28,075 and 224,600 broker warrants were paid in conjunction with the financing, with each broker warrant being exercisable at $0.25 per share for a period of one year.
Progressive Planet is a well-established cleantech and manufacturing company based in Kamloops, British Columbia, in the heart of some of Canada's richest volcanic fields, which are the prime ingredient of its innovations. The company's products are in 10,000-plus retail stores across North America.
Contact Sean at sean@proactiveinvestors.com