MustGrow Biologics Secures $2.6M in Private Placement for Growth and Expansion

MustGrow Biologics Corp. (TSXV: MGRO) (OTCQB: MGROF) (FSE: 0C0) has successfully closed a non-brokered private placement, raising $2,585,000 through the issuance of units at a price of $1,000 per unit. The company will use the proceeds to fund inventory production for TerraSante™, working capital, and general corporate purposes.

Each unit consists of a $1,000 principal amount of unsecured convertible debentures and 666 common share purchase warrants. The debentures can be converted into common shares at a price of $1.50 per share at any time or paid in cash 60 months following the closing date. The warrants are exercisable by the holder to acquire one common share at a price of $1.90 per share for a period of 60 months following the closing date. The debentures accrue interest at a rate of 8% per annum, payable semi-annually in cash.

If the daily volume weighted average trading price of the common shares on the TSX Venture Exchange (TSXV) is greater than $3.00 for the preceding 30 consecutive trading days following the date that is 12 months from the closing date, the company has the option to immediately accelerate the conversion of the debentures at the principal conversion price.

Certain finders received an aggregate cash fee of $67,200 and were issued 44,800 non-transferable finder's warrants, entitling them to purchase one common share at an exercise price of $1.90 per share for a period of 24 months following the closing date.

The company's insiders subscribed for 300 units under the private placement for aggregate gross proceeds of $300,000. The private placement remains subject to final approval of the TSX Venture Exchange (TSXV).



The private placement funding will significantly enhance MustGrow's financial health and growth prospects. The proceeds will enable the company to increase inventory production for TerraSante™, a proprietary organic soil amendment and biofertility technology, and strengthen its working capital and general corporate purposes. This investment aligns with MustGrow's long-term objectives of commercializing its mustard-derived technologies, expanding its product offerings, and entering new markets.

The strategic implications of insiders participating in the private placement are positive, as it aligns their interests with those of other shareholders and demonstrates confidence in the company's future prospects. Insiders' investment provides additional financial support to the company and helps mitigate risks associated with the private placement. However, it is essential to consider the potential for shareholder dilution, as the issuance of new shares can dilute the ownership and voting power of existing shareholders. In this case, the dilution is relatively small, as insiders subscribed for only 300 units out of the total 2,585 units issued.

In conclusion, MustGrow Biologics Corp. has successfully raised $2,585,000 through a private placement, which will significantly enhance its financial health and growth prospects. The company will use the proceeds to fund inventory production for TerraSante™, working capital, and general corporate purposes, aligning with its long-term objectives. Insiders' participation in the private placement demonstrates confidence in the company's future prospects and provides additional financial support, while the potential for shareholder dilution is relatively small.