Mr. Darren Bowden reports
DUSOLO ANNOUNCES C$2.5 MILLION PRIVATE PLACEMENT
Subject to TSX Venture Exchange approval, DuSolo Fertilizers Inc. will conduct a non-brokered private placement to raise up to $2.5-million through the issuance of units of the company at a price of 12 cents per unit. Each unit will consist of one common share of the company and one-half common share purchase warrant. Each whole warrant will entitle the holder to acquire one common share at an exercise price of 18 cents for a period of 36 months from the closing date of the private placement.
"Proceeds from this financing will be used for working capital as DuSolo continues to improve its operations and direct application natural fertilizer product suite," said Darren Bowden, chief executive officer. "Funds will also be used further define the resource at Bomfim, repay the Tembo bridge loan, as well as begin the exploration program at our new asset, Sao Roque."
As per the terms of DuSolo's $750,000 bridge loan from the Tembo Capital Group due Nov. 19, 2015 (see Aug. 10, 2015, press release), DuSolo is required to repay Tembo prior to that date from the proceeds of any financing in which over $1-million in gross proceeds are raised. In accordance with the terms of the bridge loan, part of the proceeds from the private placement will be applied to the repayment of the bridge loan.
On Sept. 11, 2015, Tembo provided DuSolo with a written proposal by which its group entities intend to: participate in a subsequent closing of the private placement by subscribing for approximately $750,000 worth of units; and provide a new, unsecured, convertible loan of $750,000 with a one-year term, 10-per-cent interest rate, 5-per-cent establishment fee and conversion rights into units at Tembo's option. The proposals from Tembo are indicative terms and subject to internal approvals and definitive documentation. Tembo holds 15.4 per cent of the company's outstanding shares.
The company will pay a 7-per-cent finder's fee and 7-per-cent brokers' warrants on the gross proceeds raised from the sales of units pursuant to the private placement, other than on units sold to Tembo.
We seek Safe Harbor.
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