Despite recent drawdowns within the larger market, EarthRenew Inc (CSE: ERTH) is looking to capitalize on the rising cost of fertilizer to bring some cash into its coffers. The firm yesterday after the close of markets announced that it will be conducting a marketed public offering of units.
The offering is to be conducted on a best efforts basis, lead by Eight Capital and Raymond James.
The financing will see the company look to sell up to 32.0 million units for gross proceeds of $8.0 million. Priced at $0.25 per unit, each unit is to contain one common share and one common share purchase warrant. Each warrant is valid for a period of four years from the date of issuance, and contains an exercise price of $0.32 per each.
An over-allotment option has also been issued, enabling the agents to sell up to an additional 15% of units under the offering. Agents are able to purchase shares separately, at $0.198 per share, and warrants, at $0.052 per warrant.
Proceeds from the offering are to be used for the expansion of production facilities in Alberta, as well as for working capital and general corporate purposes. The financing is slated to close June 21.
EarthRenew last traded at $0.295 on the CSE.
Information for this briefing was found via the companies mentioned. The author holds no securities of the company. EarthRenew is a former client of Canacom Group, the parent company of The Deep Dive. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
