MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) announced plans to raise up to $2 million through a non-brokered private placement, according to a statement released on Thursday.
The Saskatoon-based company said it intends to issue up to 4 million units at a price of $0.50 per unit. Each unit will include one common share and one common share purchase warrant. Each warrant will allow the holder to buy an additional share at $0.70 for a period of five years from the closing of the offering.
MustGrow said the proceeds are expected to be used to support inventory production for TerraSante, its mustard-derived organic biofertility product, as well as inventory for agricultural products distributed through its Canadian platform, NexusBioAg. Funds will also be allocated to working capital and general corporate purposes.
The company expects the offering to close on or about January 22, subject to customary conditions.
MustGrow Biologics is developing and commercializing plant-based biological solutions for agriculture, including products aimed at improving soil health and crop performance.