MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) said on Wednesday it plans to raise up to C$3 million through a non-brokered private placement, as the agricultural biotech firm looks to ramp up production of its mustard-derived soil bioproducts.
The financing will see the company issue up to 4.29 million units at C$0.70 each, with each unit comprising one common share and one five-year warrant exercisable at C$0.90.
Net proceeds will support inventory production for MustGrow’s TerraSante fertility product and sales through its Canadian distribution platform, NexusBioAg.
The company also intends to reprice 1.72 million outstanding warrants issued in January 2025, cutting the exercise price from C$1.90 to C$0.90, pending regulatory and holder approvals. The revised warrants will include an acceleration clause triggered if shares trade above C$1.08 for 10 consecutive days.
In a separate move, MustGrow plans to settle up to C$2.59 million in outstanding convertible debentures through a share-for-debt agreement, issuing up to 3.69 million shares at C$0.70 and paying out accrued interest in cash.