MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) announced that it has secured a $2 million line of credit (LOC) with Canadian Imperial Bank of Commerce, which is guaranteed by Canada's Export Development Canada (EDC).
The provider of innovative biological and regenerative agriculture solutions said access to the funds will allow the company to produce its organic mustard-derived biofertility product TerraSante to meet growing demand from US commercial farming operations.
"We are seeing significant uptake from large US commercial farming operations, which further validates the effectiveness, efficiency, and economics of our organic biofertility product TerraSante," MustGrow Biologics CEO Corey Giasson said in a statement.
"Utilizing our LOC on such favourable terms will enable us to build inventory to meet increasing US demand for TerraSante and support NexusBioAg's growing operations here in Canada."
MustGrow also noted that the credit line will help support working capital requirements for its Canadian sales and distribution division, NexusBioAg.
The line of credit carries an interest rate linked to Canada's prime rate plus 1% per year.
The company added that it will endeavour to increase the line of credit size to support accelerating TerraSante product demand in the US.
MustGrow Biologics develops mustard-derived organic biocontrol and biofertility products, along with third-party crop nutrition solutions distributed through NexusBioAg.