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Gensource announces final closing of non-brokered private placement

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World Fertilizer,


Following on from its news in November this year, Gensource Potash Corp. has announced that it has completed the second tranche of its non-brokered private placement financing.

According to Gensource, the second tranche of the offering consisted of the non-brokered sale of 14 345 383 common shares at $0.065 per share for gross proceeds of $932 449.90.

As announced on 29 November 2017, the company completed the first tranche of the offering by placing 10 360 768 common shares. Combined with the second tranche, aggregate gross proceeds of $1 605 899.82 have been received.

In addition to this, Gensource paid commissions on the offering to particular finders. The commissions paid to the finders comprised of cash payments of $39 980.00 and the issuance to the finders of 615 076 agent’s warrants exercisable into common shares at $0.065 per agent’s warrant for an 18-month period following the closing date.

In the statement, Gensource claims that it is planning to use the proceeds from the offering for general working capital purposes as it proceeds to complete current negotiations with market partners for the first of its scalable and environmentally responsible potash operations, as well as to continue with resource definition work to support a second project within the Vanguard area.

The securities issued pursuant to the offering are subject to a four month and one day statutory hold period.

The President and CEO of Gensource, Mike Ferguson, said: “We are very pleased with the response to our private placement, ending in an over-subscribed financing. Most satisfying is the robustness of the response even in a period of continued negative sentiments in the general potash industry. This tells us that our shareholders clearly understand our business model, which is not about the current price of potash or the current macro supply-demand situation. They understand that our business model has the potential to begin to change the industry, taking advantage of the rigid industry structure that has been created over many decades by providing an alternative: an alternative with respect to scale, efficiency, cost, environmental impact and simplicity of supply chain. Gensource continues to seek potential market partners that will facilitate the proposed implementation of our first scalable and environmentally friendly project.”

Read the article online at: https://www.worldfertilizer.com/potash/18122017/gensource-announces-final-closing-of-non-brokered-private-placement/

 

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