DuSolo Closes Placement Tranche, Arranges $750,000 Loan

DuSolo Fertilizers Inc. (TSXV:DSF) announced it has closed the initial tranche of its non-brokered private placement previously announced on Sept. 14 and Sept. 19, 2015, and has signed a one-year convertible loan agreement, for aggregate gross proceeds of $3.2-million.
As quoted in the press release:

A total of C$2,434,500 has been raised through the issuance of 24,345,000 units (“Units”) of the Company at a price of C$0.10 per Unit. Each Unit consists of one common share of the Company (“Common Share”) and one-half Common Share purchase warrant (“Warrant”). Each whole Warrant entitles the holder to acquire one common share at an exercise price of C$0.15 for a period of 36 months from the closing date of the Private Placement. Lead orders came from existing shareholders including M&G Investment Management and the Tembo Capital group (“Tembo Capital”), as well as from certain directors of the Company. Due to the significant interest DuSolo received in the Private Placement, it is considering subscriptions in excess of C$2.5 million.
The Company also announces that it has executed a one-year convertible loan agreement with Tembo Capital pursuant to which Tembo Capital will advance $750,000 (“the Loan”). The Loan has an interest rate of 10%, an establishment fee of 5%, and Tembo Capital may, at any time, convert the Loan and all interest and fees accruing thereunder into Units carrying the same terms as issued in the Private Placement.
The Company has used approximately $800,000 from the proceeds of the Private Placement to repay the principal amount and all interest and fees accrued under the three-month bridge loan from Tembo Capital. The remainder of the proceeds from the Private Placement and the Loan will be used to for working capital as DuSolo continues to improve its operations and market its Direct Application Natural Fertilizer products. In addition, funds will be used further define the resource at Bomfim, and begin the exploration program at the Company’s new asset, Sao Roque.
Following closing of the Private Placement, Tembo Capital holds 28,063,519 common shares of the Company representing 18.15% of the Company’s issued and outstanding shares. Pursuant to the policies of the TSX Venture Exchange (the “TSX-V”), a company must obtain disinterested shareholder approval prior to the issuance of securities to a shareholder that would result in that person becoming a “Control Person” as defined in the policies of the TSX-V. DuSolo has agreed to seek such approval with respect to the issuance of securities to Tembo Capital pursuant to the Loan and exercise of any Warrants it holds at its next shareholder meeting.

DuSolo CEO Darren Bowden stated:

We are encouraged by the support we received from the market for this financing. DuSolo is now in a financial position where we can move forward with our plans to improve our operations, increase sales and marketing activities, and begin exploration at our newly acquired asset.

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