Progressive Planet Solutions Inc (TSX-V:PLAN) said it has closed the first tranche of its non-brokered private placement financing of units for gross proceeds of $4,014,675.
The Vancouver, British Columbia-based company, which creates supplementary cementing materials, said proceeds from the first tranche will be used to fund the cash component in its acquisition of Absorbent Products Ltd. (APL), which produces industrial minerals from two mines in British Columbia.
Progressive Planet noted that the proceeds would fund APL’s work program related to its mineral properties and assist in APL debt retirement assumed by the company under the acquisition.
Under the first tranche, 11.47 million units were sold at $0.35 per unit. Each unit is made up of one common share and one warrant, with each warrant exercisable at $0.60 per share for a period of two years from issuance. If, in the second year of the exercise period, the trading price of the company's shares on the TSX Venture Exchange is greater than $0.75 per share for a period of 10 trading days, the exercise period may be accelerated.
READ: Progressive Planet inks binding share purchase agreement to acquire Absorbent Products
Each of the first tranche shares, warrants and common shares underlying the warrants are subject to a four-month hold period expiring on June 10, 2022.
The company said a second tranche of confirmed orders for at least 4.3 million additional units and gross proceeds of at least $1.50 million is expected to close shortly.
It anticipates that 300,000 units in the additional tranche will be subscribed for, directly or indirectly, by George David Richardson. In addition, 50,000 units will be subscribed for, directly or indirectly, by Progressive Planet CEO Stephen Harpur.
Three shareholders of Absorbent Products will also subscribe for an aggregate of 1.75 million units. The company said it will provide an update when the additional tranche has closed.
Meanwhile, Progressive Planet reiterated that the completion of the APL acquisition is subject to standard closing conditions, including approval from the TSX Venture Exchange.
Under the terms of the deal, Progressive Planet will continue to maintain and support APL’s existing business operations, while also gaining access to supplies of natural pozzolans to develop incremental lines of business in sustainable cement and additional agricultural powders.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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