Verde AgriTech Announces Non-Brokered Private Placement to Existing Shareholders and Other Investors
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
BELO HORIZONTE, Brazil, Feb. 26, 2019 (GLOBE NEWSWIRE) -- Verde AgriTech Plc (TSX: NPK) ("Verde” or the “Company”) is pleased to announce a non-brokered private placement to raise up to C$1 million (the “Placement”) through the issuance of up to 1,666,666 units of securities (“Units”) at a price of $ 0.60 per Unit.
Each Unit will be comprised of one ordinary share of the Company (an “Ordinary Share”) and one-half of one Ordinary Share purchase warrant (a “Warrant”). Each whole Warrant will be exercisable to purchase an Ordinary Share at an exercise price of C$1.00 until the second anniversary of the closing of the Placement. The Warrants will be unlisted.
The Placement will be open to all existing shareholders who are accredited investors, and to non-shareholder accredited investors. The minimum subscription will be for 83,333 units of securities or for $ 49,999.80. Each subscriber will be required to complete a subscription agreement that confirms, among other things, the availability of an exemption from the prospectus requirements of applicable securities laws in respect of the sale of Units to such subscriber.
The Company discloses that its senior management and directors will be subscribing to this offering, subject to applicable securities regulations.
Eligible investors wishing to participate in the Placement are invited to contact the Company via the email investor@verdeagritech.com to obtain a subscription agreement. In the event of over-subscription, the Company will determine allocations between subscribers and/or increase the Placement size at its sole discretion.
The Placement is expected to close on or about March 8, 2019.
The Ordinary Shares and Warrants comprising the Units (the “Unit Securities”) (and any Ordinary Shares issued on exercise of the Warrants (“Warrant Shares”)) will be subject to a hold period of four months from the closing date of the Placement.
The terms and completion of the Placement are subject to TSX conditional approval. The Company will not pay brokerage or finder's fees in connection with the Placement. The net proceeds from the Placement will be used by the Company for general working capital purposes.
Commenting, President & CEO, Cristiano Veloso, stated: “We have strived to minimize dilution to our shareholders. This small raise is needed because we aim to expand our sales team and reserve our bank’s lines of credit for the construction of our expansion.. Moreover, a part of this capital will be used to finance this season’s early purchases, which covers our buyers up to 6 months at 1.8% monthly rate. In sum, the capital will be narrowly employed with the single goal of expanding sales and production”. |
