This announcement follows the company’s news releases on 21 November 2017 and 15 December 2017.
Itafos is an integrated producer of phosphate-based fertilizers and specialty products with a portfolio of long-term and strategic phosphate assets located in key agricultural and fertilizer markets worldwide.
In the statement, Itafos claims that it is expecting to issue an additional 4 585 042 shares of the company at an effective price of CAN$2.10 per share in connection with the shares for debt transaction announced on 15 December 2017. The principal use of proceeds of the offering is reportedly to fund the continued implementation of Itafos’ strategic and business development initiatives, as well as for working capital and general corporate purposes.
Zaff LLC – an insider of the company – subscribed for a total of 31 431 391 shares under the offering. Zaff now beneficially owns, or exercises control or direction over, 81 452 992 shares of the company.
The TSX Venture Exchange (TSXV) has granted conditional approval of the listing of the shares issued under the offering. Itafos claims that final approval by the TSXV of the offering is subject to compliance with the customary requirements of the TSXV. The shares issued under the offering are subject to resale restrictions pursuant to a ‘distribution compliance period’ (as defined in Regulation S under the United States Securities Act of 1933, as amended) of one year from the date the shares were issued. The shares are also subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable Canadian securities legislation and TSXV requirements, which hold period will run concurrently with the above referenced one year restricted period under US securities legislation.