MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF, FRA:0C0) announced the closing of its previously announced non-brokered private placement, raising gross proceeds of $2 million.
The Saskatoon-based company said it issued 4 million units at a price of $0.50 per unit under the offering, which was completed pursuant to the listed issuer financing exemption. Each unit consists of one common share and one common share purchase warrant.
Each whole warrant is exercisable for a period of 60 months from the date of closing and entitles the holder to purchase one additional common share at an exercise price of $0.70 per share.
MustGrow said it intends to use the net proceeds from the financing for inventory production of its mustard-derived organic biofertility product TerraSante, inventory for agricultural products to be sold through its Canadian distribution platform NexusBioAg, and for working capital and general corporate purposes.
Shares of MustGrow gained nearly 8% in Toronto on Friday morning.