Brazil Potash Corp. has announced the closing of its initial public offering (the IPO) of 2 000 000 of its common shares, no par value per share, at a price to the public of US$15.00 per share. The gross proceeds to the company from the IPO, before deducting underwriting discounts and commissions and estimated offering expenses payable by the company, were US$30.0 million. In addition, the company has granted the underwriters an option to purchase up to an additional 300 000 common shares, for a period of 30 days from the date of the final prospectus, to cover over-allotments, if any.
The common shares commenced trading on the NYSE American on November 27, 2024 under the symbol GRO.
Brazil Potash intends to use the net proceeds of the offering primarily to fund its pre-operation development expenses, to pay its current liabilities, and for working capital and general corporate purposes, which will include, among others, expenses relating to (i) obtaining and complying with its environmental licenses, (ii) engineering, procurement and construction for critical path items, and (iii) other pre-development matters, such as obtaining the environmental license, the mining concession, and other remaining required authorisations, permits and licenses for the Autazes Project, purchasing the remaining land for certain project sites, primarily consisting of the sites to be used for the dry stacked tailings piles, and maintaining its mineral rights.