Mustgrow closes $2-million private placement

Executive Summary

• Mustgrow Biologics Corp. has closed a non-brokered private placement (LIFE offering) raising $2.0 million in gross proceeds.
• The company issued 4 million units at a price of $0.50 per unit, with each unit comprising one common share and one common share purchase warrant.
• Net proceeds are designated for inventory production for the TerraSante product line, agricultural product inventory for the NexusBioAg platform, and general working capital.

Key Details

• Transaction Structure: Non-brokered private placement closed under the Listed Issuer Financing Exemption (LIFE).
• Gross Proceeds: $2,000,000.
• Units Issued: 4,000,000 units.
• Price Per Unit: $0.50.
• Unit Composition: Each unit consists of (i) one common share and (ii) one common share purchase warrant.
• Warrant Terms:
  • Each whole warrant is exercisable for one additional share.
  • Exercise Price: $0.70 per share.
  • Term: 60 months from the date of closing.
• Use of Proceeds:
  • Inventory production for mustard-derived organic biofertility product TerraSante.
  • Inventory for agricultural products to be sold via the Canadian distribution platform NexusBioAg.
  • Working capital and general corporate purposes.
• Finder’s Fees:
  • Cash fees totaling $105,000 (6.0% of gross proceeds from introduced investors).
  • 210,000 non-transferable common share purchase warrants issued to finders (6.0% of aggregate shares issued to introduced investors).
  • Finder warrant terms: Exercise price of $0.70 per share for a 60-month period.
  • Finder warrants are subject to a statutory hold period of four months and one day following the date of issue.
• Regulatory Status: Subject to final approval of the TSX Venture Exchange. Securities issuable to Canadian resident subscribers are not subject to a hold period under applicable Canadian securities laws (subject to TSX-V rules).

Notable Quotes

• None provided in the text.