Further to its news release dated Sept. 19, 2016, Gensource Potash Corp. has completed the second and final tranche of the brokered private placement financing.
Further to its news release dated Sept. 19, 2016, Gensource Potash Corp. has completed the second and final tranche of the brokered private placement financing. The combined aggregate gross proceeds of both tranches of the Offering was $3,233,650. The second tranche of the Offering consisted of the sale of 2,490,559 units of the Company (the “Units”) at a price of $0.09 per Unit for aggregate gross proceeds of $224,150. Each Unit consisted of one common share in the capital stock of the Company and one common share purchase warrant (“Warrant”). Each Warrant is exercisable at a price of $0.15 per share beginning on the date that is 12 months following the closing date of the Offering (the “Closing Date”) and expiring on the date that is 24 months following the Closing Date.
The Offering was completed by Industrial Alliance Securities Inc. (the “Agent”). A cash commission of $14,532 was paid to the Agent, including the issuance to the Agent (and members of the Agent’s selling group) of 161,467 agent’s units exercisable into Units at a price of $0.09 per agent’s unit for a period of 24 months following the Closing Date.
Mike Ferguson, President & CEO of Gensource said, “We are pleased to complete this private placement. The proceeds from both tranches will be used to complete the planned drilling and seismic work with a goal to upgrade the resource in the Vanguard area to the measured and indicated categories, which will support a feasibility study. As announced on October 12th, Gensource has begun work on the Vanguard feasibility study and the proceeds will be invested in that work as well.”
“The success of the Offering indicates to us that our vision of utilizing new, efficient and clean mining and processing techniques to manufacture potash fertilizer while moving that product directly to the consuming market under a vertical integration arrangement is catching on and the benefits of such an arrangement are being understood. It’s an exciting path forward and, with the continued support of the financial markets, we will work to create a new model to provide an alternative source of supply to the farmers who need potash to increase their effectiveness in food production.”