MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) has announced a proposed non-brokered private placement to raise approximately $2 million in gross proceeds, with an option to increase the offering by an additional $1 million.
Proceeds from the private placement will be used for inventory production for TerraSante, its certified biofertility product.
MustGrow is ramping up production of TerraSante in 2025.
The firm also has a commercial licensing agreement with Bayer AG (ETR:BAYN, OTC:BAYZF) for the TerraMG soil biopesticide in Europe, the Middle East, and Africa, with estimated upfront and milestone payments of $35 to $40 million.
In the placement, the company plans to sell about 2,000 units for $1,000 per unit. Each unit will consist of $1,000 in unsecured convertible debentures and 666 common share purchase warrants.
Each debenture will be convertible into MustGrow's common shares at a price of $1.50 per share, or can be repaid in cash after 60 months, subject to certain acceleration and automatic conversion rights. The debentures will accrue interest at an annual rate of 8%, payable semi-annually in cash.
The attached warrants will be exercisable at $1.90 per common share for a period of 60 months following the closing date.
The offering is expected to close by January 10.