Mustgrow obtains $2M CIBC credit line backed by EDC

Executive Summary

• Mustgrow Biologics Corp. has secured a $2.0 million line of credit (LOC) from Canadian Imperial Bank of Commerce (CIBC), guaranteed by Export Development Canada (EDC).
• The facility is intended to support working capital for its Canadian sales division, NexusBioAg, and to fund the production of its organic biofertility product, TerraSante, to meet growing demand from U.S. commercial farming operations.
• The LOC carries an interest rate of Canada's prime rate plus 1.00% per annum (currently 5.95%), and the company intends to increase the size of the facility to support accelerating U.S. demand.

Key Details

• Financing Amount: $2.0 million line of credit.
• Lender: Canadian Imperial Bank of Commerce (CIBC).
• Guarantor: Export Development Canada (EDC) has guaranteed the LOC on Mustgrow's behalf.
• Interest Rate: Linked to Canada's prime rate plus 1.00% per annum.
• Current Prime Rate: 4.95% (resulting in an effective rate of 5.95%).
• Use of Proceeds:
  • Produce TerraSante (organic mustard-derived biofertility product) to meet growing U.S. demand.
  • Support working capital requirements for the Canadian sales and distribution division, NexusBioAg.
• Future Plans: Mustgrow will endeavor to increase the LOC size to support accelerating TerraSante product demand in the U.S.

Notable Quotes

• "We are seeing significant uptake from large U.S. commercial farming operations, which further validates the effectiveness, efficiency and economics of our organic biofertility product TerraSante," asserted Corey Giasson, president and chief executive officer of Mustgrow. "Utilizing our LOC on such favourable terms will enable us to build inventory to meet increasing U.S. demand for TerraSante and support NexusBioAg's growing operations here in Canada."