Fuelpositive files offering document for $5M financing

Executive Summary

• Fuelpositive Corp. has filed the offering document for a non-brokered private placement under the Listed Issuer Financing Exemption (LIFE), raising up to $5 million in gross proceeds.
• The company is launching Canada's first on-farm green ammonia system, with the first FP300 unit delivered and certified, triggering the demonstration phase and accelerating the ramp-up to the larger FP1500 commercial system.
• The financing will fund the activation of the pilot, drive the demonstration phase, protect intellectual property, finalize commercial manufacturing agreements, and initiate revenue generation.

Key Details

• Financing Structure: Non-brokered private placement under the LIFE exemption (Part 5A of National Instrument 45-106).
• Units Offered: Up to 71,428,571 units.
• Price: $0.07 per unit.
• Gross Proceeds: Up to $5,000,000.
• Warrant Terms: Each unit includes one common share and one common share purchase warrant. The warrant allows the holder to acquire an additional common share at $0.10 within 48 months. Accelerated expiry applies if the TSX Venture Exchange volume-weighted average closing price is $0.40 or more for 10 consecutive trading days.
• Regulatory Status: No statutory hold period applies. Completion is contingent upon approval by the TSX Venture Exchange.
• Use of Proceeds: Activation of the pilot, demonstration phase, IP protection, performance optimization, finalizing commercial manufacturing agreements, confirming sales, and initiating revenue generation.
• Operational Milestone: The first FP300 system has been delivered, completed final certification, and is ready for activation.
• Product Specifications:
  • FP300 (Demonstration): Installed on an 11,000-acre farm in Sperling, Man. Designed to produce 100 metric tonnes of green ammonia annually.
  • FP1500 (Commercial): Built for farms of approximately 10,000 acres. Designed to generate 500 metric tonnes of green ammonia annually.
• Environmental Impact: Each tonne of ammonia produced prevents up to two tonnes of CO2e emissions.
• Strategic Partnership: Supported by global design and engineering leader Stantec.

Notable Quotes

• "Our technology is proven, Canadian built and ready to change the way the world farms," said Ian Clifford, co-founder and chief executive officer of Fuelpositive. "This financing is a rare opportunity to participate in scaling a solution that farmers need now, strengthen food security, protect the environment and secure a leadership position in a multibillion-dollar market."