Verde AgriTech closes oversubscribed private placement for proceeds of C$1.8 million, including C$800,000 investment from Palisade Global Investments Ltd.
TORONTO, July25, 2017(GLOBE NEWSWIRE) -- Verde AgriTech (TSX:NPK) ("Verde" or the "Company") is pleased to announce it has closed its previously announced non-brokered private placement financing, issuing 1,727,143 units at C$1.05 per unit for total proceeds of $1,813,500. (the "Placement").Each unit is comprised of one ordinary share of the Company (an "Ordinary Share") and one Ordinary Share purchase warrant (a "Warrant").Each Warrant is exercisable to purchase an Ordinary Share at an exercise price of C$2.00 for a period of two years, subject to an acceleration provision under which if the 20-day volume weighted average trading price of the Ordinary Shares on the Toronto Stock Exchange (the "TSX") exceeds C$2.20, the Company can accelerate the expiry date of the Warrants by giving notice that the expiry date of the Warrants has been accelerated to 30 days after the notice.
The Ordinary Shares and Warrants comprised in the units, and any Ordinary Shares issued upon exercise of the Warrants, are subject to a four month hold period expiring on November 25, 2017.
No commissions or compensation warrants have been paid or issued in connection with the Placement.
Proceeds of the Placement will be used for general working capital.
Palisade Global Investments Ltd investment and marketing services
Palisade Global Investments is a private merchant banking and investment group with a strong focus on resources. "Since 2013 Verde has focused on research and market development for its new product and proportionally reduced its marketing efforts. The partnership with Palisade marks a new phase when the company will resume a comprehensive communication program with investors and analysts", said Verde's Founder and CEO, Cristiano Veloso.
"With little downside risk left now that Verde AgriTech is cash flowing, we are excited to invest knowing all the growth potential in this company. We are also quite impressed in how Verde's management has navigated through the last 5 years of bear market with zero dilution", said Sean Zubick, COO & Partner of Palisade Global Investments Ltd.
Pre-Feasibility Study Update
The study announced on May 23rd is underway and on target for Q4/17 completion.
About Verde AgriTech
Verde AgriTech promotes sustainable and profitable agriculture through the development of its Cerrado Verde Project. Cerrado Verde, located in the heart of Brazil's largest agricultural market, is the source of a potassium-rich deposit from which the Company intends to produce solutions for crop nutrition, crop protection, soil improvement and increased sustainability.
For additional information please contact:
Cristiano Veloso, President & Chief Executive Officer
Tel: +55 (31) 3245 0205; Email: cv@verdeagritech.com
Cautionary Language and Forward Looking Statements
Neither the TSX nor its regulation services provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release. This press release contains certain "forward looking statements", which include but are not limited to, statements with respect to the future financial or operating performance of the company, its subsidiaries and its projects, and statements regarding use of proceeds. Forward looking statements can generally be identified by the use of words such as "plans", "expects", or "does not expect" or "is expected", "anticipates" or "does not anticipate", or "believes", "intends", "forecasts", "budget", "scheduled", "estimates" or variations of such words or phrases or state that certain actions, events, or results "may", "could", "would", "might", or "will be taken", "occur" or "be achieved". Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by said statements. There can be no assurances that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in said statements. Accordingly, readers should not place undue reliance on forward looking statements.