MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) announced the completion of its previously disclosed non-brokered private placement of units, raising $2,585,000.
The proceeds of the offering will be used for inventory production of its biofertilizer offering TerraSante, working capital and general corporate purposes.
Each unit consisted of an unsecured convertible debenture worth $1,000 and 666 common share purchase warrants.
The debentures can be converted into common shares at $1.50 per share or repaid in cash within 60 months, with an annual interest rate of 8%.
The accompanying warrants are exercisable at $1.90 per share for a period of 60 months.
The offering includes an acceleration option for the debenture conversion if the company’s stock trades above $3 for 30 consecutive trading days, starting 12 months after closing.
As part of the placement, finders received $67,200 in fees and 44,800 finder’s warrants with a $1.90 exercise price valid for 24 months.