MustGrow Closes Non-Brokered LIFE Offering of Approximately $2.1 Million, Repricing of Warrants, and Shares for Debt Settlement
MustGrow Biologics (OTCQB: MGROF) has completed several financial transactions to strengthen its capital structure. The company closed a non-brokered LIFE offering of approximately $2.1 million, issuing 3,059,731 units at $0.70 per unit. Each unit includes one common share and one warrant exercisable at $0.90 for 60 months.
Additionally, MustGrow repriced its January 2025 warrants from $1.90 to $0.90 per share and implemented a shares-for-debt settlement of $2.385 million in convertible debentures through the issuance of approximately 3.4 million shares at $0.70 per share. The proceeds will fund inventory production for TerraSante™ biofertility product and NexusBioAg distribution platform.
MustGrow Biologics (OTCQB: MGROF) ha concluso diverse operazioni finanziarie per rafforzare la propria struttura patrimoniale. La società ha chiuso un offerta LIFE non intermedia di circa 2,1 milioni di dollari, emettendo 3.059.731 unità a 0,70$ ciascuna. Ogni unità comprende una azione ordinaria e una warrant esercitabile a 0,90$ per 60 mesi.
Inoltre, MustGrow ha rideterminato il prezzo delle proprie warrant con scadenza gennaio 2025, portandolo da 1,90$ a 0,90$ per azione, e ha effettuato un concordato azioni-per-debito su 2,385 milioni di dollari di obbligazioni convertibili mediante l’emissione di circa 3,4 milioni di azioni a 0,70$ ciascuna. I proventi saranno destinati alla produzione di inventario per il prodotto biofertilizzante TerraSante™ e per la piattaforma di distribuzione NexusBioAg.
MustGrow Biologics (OTCQB: MGROF) ha completado varias transacciones financieras para fortalecer su estructura de capital. La compañía cerró una oferta LIFE no intermediada de aproximadamente 2,1 millones de dólares, emitiendo 3.059.731 unidades a 0,70$ por unidad. Cada unidad incluye una acción común y una warrant ejercitable a 0,90$ durante 60 meses.
Además, MustGrow reajustó el precio de sus warrants de enero de 2025 de 1,90$ a 0,90$ por acción e implementó una compensación acciones-por-deuda de 2,385 millones de dólares en bonos convertibles mediante la emisión de aproximadamente 3,4 millones de acciones a 0,70$ cada una. Los ingresos se destinarán a financiar la producción de inventario para el fertilizante biológico TerraSante™ y la plataforma de distribución NexusBioAg.
MustGrow Biologics (OTCQB: MGROF)는 자본 구조를 강화하기 위해 여러 재무 거래를 완료했습니다. 회사는 약 210만 달러 규모의 비중개형 LIFE 공모를 마감하고, 단가 0.70달러로 3,059,731단위를 발행했습니다. 각 단위는 보통주 1주와 60개월 동안 행사가 0.90달러인 워런트 1매를 포함합니다.
아울러 MustGrow는 2025년 1월 워런트의 행사가를 주당 1.90달러에서 0.90달러로 조정했고, 약 340만 주를 주당 0.70달러로 발행하는 방식으로 238.5만 달러 상당의 전환사채 채무를 주식으로 정리
MustGrow Biologics (OTCQB: MGROF) a finalisé plusieurs opérations financières pour renforcer sa structure de capital. La société a clôturé une offre LIFE non-intermédiée d’environ 2,1 millions de dollars, émettant 3 059 731 unités à 0,70$ l’unité. Chaque unité comprend une action ordinaire et un warrant exerçable à 0,90$ pendant 60 mois.
De plus, MustGrow a révisé le prix d’exercice de ses warrants de janvier 2025 de 1,90$ à 0,90$ par action et a mis en place un règlement actions-contre-dette portant sur 2,385 millions de dollars de débentures convertibles via l’émission d’environ 3,4 millions d’actions à 0,70$ chacune. Les fonds serviront à financer la production de stocks pour le fertilisant biologique TerraSante™ et la plateforme de distribution NexusBioAg.
MustGrow Biologics (OTCQB: MGROF) hat mehrere Finanztransaktionen abgeschlossen, um seine Kapitalstruktur zu stärken. Das Unternehmen schloss ein nicht vermittelte LIFE-Angebot über rund 2,1 Millionen US-Dollar ab und gab 3.059.731 Einheiten zu je 0,70$ aus. Jede Einheit umfasst eine Stammaktie und eine Warrant mit Ausübungspreis 0,90$ für 60 Monate.
Zusätzlich passte MustGrow den Ausübungspreis seiner Warrants von Januar 2025 von 1,90$ auf 0,90$ pro Aktie an und führte eine Aktien-gegen-Schulden-Regelung über 2,385 Millionen US-Dollar an wandelbaren Schuldscheinen durch, indem etwa 3,4 Millionen Aktien zu 0,70$ ausgegeben wurden. Die Erlöse werden zur Finanzierung der Bestandsproduktion für das Bio-Düngemittel TerraSante™ und die Vertriebsplattform NexusBioAg verwendet.
- Raised $2.14 million through LIFE offering to fund inventory production and working capital
- Successfully converted $2.385 million of debt to equity, improving balance sheet structure
- Warrant repricing from $1.90 to $0.90 increases likelihood of future capital through warrant exercises
- Significant dilution through issuance of over 6.4 million new shares combined from offering and debt settlement
- Warrant repricing represents a 52.6% reduction in potential future proceeds from warrant exercises
Saskatoon, Saskatchewan--(Newsfile Corp. - August 29, 2025) - MustGrow Biologics Corp. (TSXV: MGRO) (OTCQB: MGROF) (FSE: 0C0) (the "Company" or "MustGrow"), is pleased to announce: (i) the closing of its previously annoucned non-brokered private placement of 3,059,731 units of the Company (each, a "Unit") at a price of
LIFE Offering
Each Unit consists of (i) one common share of the Company (a "Share") and (ii) one common share purchase warrant (a "Warrant"). Each whole Warrant will be exercisable for a period of 60 months from the date of closing and will entitle the holder thereof to purchase one additional Share (a "Warrant Share") at an exercise price of
The Company intends to use the net proceeds raised from the LIFE Offering for inventory production for its mustard-derived organic biofertility product TerraSanteTM, inventory for agricultural products to sell via its Canadian distribution platform NexusBioAg, and working capital and general corporate purposes.
Subject to the rules and policies of the TSX Venture Exchange (the "TSXV"), the securities issuable from the sale of Units to subscribers are not subject to a hold period under applicable Canadian securities laws. Insiders and certain consultants that participate in the LIFE Offering would be subject to a four-month hold period pursuant to applicable policies of the TSXV.
The Units sold pursuant to the LIFE Offering were offered in Canada pursuant to the listed issuer financing exemption from the prospectus requirement available under Part 5A of National Instrument 45-106 - Prospectus Exemptions as modified by Coordinated Blanket Order 45-935 Exemptions from Certain Conditions of the Listed Issuer Financing Exemption (the "LIFE Exemption").
As consideration for services, certain eligible finders received (i) an aggregate cash fee equal to
Warrant Repricing
The Company, having received the consent from all the holders of outstanding common share purchase warrants (the "January Warrants") issued pursuant to its January 16, 2025 private placement, has repriced an aggregate of 1,721,610 January Warrants. The January Warrants have an expiry date of January 16, 2030 and previously had an exercise price of
The January Warrants will be deemed to be amended to adjust their exercise price to
The Warrant Repricing is subject to the final approval of the TSXV.
Shares for Debenture Debt Settlement
The Company offered a shares for debt settlement to all holders of unsecured convertible debentures issued pursuant to its January 16, 2025 private placement (the "Debentures"), to settle the outstanding principal amount owing under the Debentures, in the aggregate amount of
The Settlement Shares are subject to a statutory hold period expiring four months and one day from the date of issuance, in accordance with applicable securities laws and TSXV policies.
The Shares-for-Debt Transaction is subject to the final approval of the TSXV.
MI 61-101 Compliance
Certain insiders of the Company participated in the LIFE Offering, purchasing an aggreagte of 285,716 Units. Any Units issued to insiders is be subject to a four month hold period pursuant to applicable policies of the TSXV, (ii) certain insiders of the Company participated in the Warrant Repricing (subject to the rules and policies of the TSXV), and (iii) certain insiders of the Company also participated in the Shares for Debenture Debt Settlement, and any Settlement Shares issued to insiders is subject to a four month hold period pursuant to applicable policies of the TSXV.
The issuance of Units to any insiders, the participation of any insiders in the Warrant Repricing, and the issuance of Settlement Shares to any insiders is considered a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). In respect of any such insider participation, the Company is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to section 5.7(1)(a), as the fair market value of the transaction, insofar as it involves interested parties, does not exceed
About MustGrow
MustGrow Biologics Corp. is a fully-integrated provider of innovative biological and regenerative agriculture solutions designed to support sustainable farming. The Company's proprietary and third-party product lines offer eco-friendly alternatives to restricted or banned synthetic chemicals and fertilizers. In North America, MustGrow offers a portfolio of third-party crop nutrition solutions, including micronutrients, nitrogen stabilizers, biostimulants, adjuvants and foliar products. These products are synergistically distributed alongside MustGrow's wholly-owned proprietary products and technologies that are derived from mustard and developed into organic biocontrol and biofertility products to help replace banned or restricted synthetic chemicals and fertilizers. Outside of North America, MustGrow is focused on collaborating with agriculture companies, such as Bayer AG in Europe, the Middle East and Africa, to commercialize MustGrow's wholly-owned proprietary products and technologies. The Company is dedicated to driving shareholder value through the commercialization and expansion of its intellectual property portfolio of approximately 109 patents that are currently issued and pending, and the sales and distribution of its proprietary and third-party product lines through NexusBioAg. MustGrow is a publicly traded company (TSXV: MGRO) and has approximately 58.9 million common shares issued and outstanding and 67.5 million shares fully diluted. For further details, please visit www.mustgrow.ca.
Contact Information
Corey Giasson Director & CEO
Phone: +1-306-668-2652
info@mustgrow.ca
MustGrow Forward-Looking Statements
Certain statements included in this news release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may affect the results, performance or achievements of MustGrow.
Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "occur" or "be achieved". Forward-looking statements in this news release, including statements about: the intended use of proceeds of the LIFE Offering, and are subject to a number of risks and uncertainties that may cause the actual results of MustGrow to differ materially from those discussed in such forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, MustGrow. Important factors that could cause MustGrow's actual results and financial condition to differ materially from those indicated in the forward-looking statements include: risks relating to the Company's ability to complete the proposed financing transactions on the terms and timeline contemplated herein, or at all, including the receipt of final approvals from the TSXV and satifiscation of other closing conditions, and those risks described in more detail in MustGrow's Annual Information Form for the year ended December 31, 2024 and other continuous disclosure documents filed by MustGrow with the applicable securities regulatory authorities which are available on SEDAR+ at www.sedarplus.ca. Readers are referred to such documents for more detailed information about MustGrow, which is subject to the qualifications, assumptions and notes set forth therein.
Neither the TSXV, nor their Regulation Services Provider (as that term is defined in the policies of the TSXV), nor the OTC Markets has approved the contents of this release or accepts responsibility for the adequacy or accuracy of this release.
© 2025 MustGrow Biologics Corp. All rights reserved.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/264404
FAQ
What is the size and price of MustGrow's (MGROF) LIFE offering in August 2025?
How much debt did MustGrow convert to equity in the August 2025 transaction?
What are the new terms for MustGrow's repriced January 2025 warrants?
How will MustGrow use the proceeds from the LIFE offering?
What is the holding period for the newly issued MustGrow shares?
