MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) announced it has closed a non-brokered private placement, completed a warrant repricing, and settled outstanding debt through the issuance of shares.
The private placement raised gross proceeds of approximately $2.14 million through the issuance of 3,059,731 units at $0.70 each.
Each unit consists of one share and one share purchase warrant, exercisable at $0.90 for a period of 60 months.
The proceeds will be used for inventory production of TerraSante, product distribution via NexusBioAg, and general corporate purposes.
The company repriced 1,721,610 warrants originally issued in January 2025, reducing the exercise price from $1.90 to $0.90.
The amended warrants now include an acceleration clause triggered if MustGrow shares close above $1.08 for 10 consecutive trading days.
MustGrow also settled $2.39 million of unsecured convertible debentures through the issuance of up to 3.41 million shares at a deemed price of $0.70, along with a cash payment of accrued interest.
Certain insiders participated in the private placement, warrant repricing, and debt settlement.
These are considered related party transactions under securities regulations, but the company relied on exemptions from valuation and minority shareholder approval requirements.
MustGrow Biologics develops mustard-derived organic biocontrol and biofertility products, along with third-party crop nutrition solutions distributed through NexusBioAg.