Vancouver, BC, February 28, 2022 – Progressive Planet Solutions Inc. (TSXV: PLAN) (“PLAN”, “Progressive Planet” or the “Company”), an innovative provider of eco-friendly micronized minerals and circular solutions for construction, agricultural, animal health, and industrial sectors, is pleased to announce that it has closed the final tranche of its private placement, announced December 24, 2021. The final tranche was comprised of 6,293,140 units for additional gross proceeds of $2.20 million.
Pursuant to the final tranche closing, the Company issued a total of 6,293,140 units, each unit comprised of one common share and one warrant exercisable at $0.60 for two years (expiring February 18, 2024), subject to acceleration in the second year if the Company’s shares trade at over $0.75 per share for a period of ten trading days. Together with the first tranche closing on February 10, 2022, the Company issued an aggregate total of 17,763,640 units for aggregate gross proceeds of $6.22 million.
A portion of the overall financing proceeds were used to complete the Company’s acquisition and February 18,2022 closing of Absorbent Products Ltd. (“APL”), a dominant manufacturer of mineral-based products derived from diatomaceous earth, zeolite, and bentonite. The remaining proceeds will be used to fund further APL mineral property development, to expand comminution business operations into APL’s premises as part of its head office relocation and for APL debt retirement purposes.
PLAN will continue to support current APL business operations and eco-conscious product lines, while retaining all patents and intellectual property rights to help further additional developments in sustainable cement, crop nutrition and other areas.
Four insiders participated in this private placement, including David Richardson, a “control person” of the Company by reason of holding, directly and indirectly, more than 20% of the Company’s issued shares. Mr. Richardson purchased 300,000 units through his company Countryman Investments Ltd., for a total of $105,000. Immediately prior to his participation, Mr. Richardson held 20,148,499 common shares of the Company and 5,725,000 share purchase warrants, directly and indirectly, representing 35.52% of the outstanding shares (calculated on a partially diluted basis assuming exercise of such warrants) prior to the completion of the private placement and aforementioned acquisition. With his participation, Mr. Richards’s direct and indirect shareholdings will represent 28.06% of the outstanding shares, on a partially diluted basis assuming exercise of his warrants.
Finder’s fees of $175,618 were paid to agents of the Company, alongside 501,767 agent’s warrants exercisable at $0.35 per share until February 18, 2023.The shares and warrants comprising the units sold in the offering, the agent’s warrants, and the shares underlying the warrants and agent’s warrants, are subject to a four month hold period expiring June 19, 2022.
About Progressive Planet
Progressive Planet is an emerging company providing innovative circular solutions and earth-friendly micronized minerals that naturally unlock sustainability benefits across the construction, agriculture, and industrial sectors. Tapping into the earth’s inherent binding powers and properties, PLAN is developing and scaling a portfolio of proprietary solutions to help our customers build, grow, live, and operate more responsibly.
For further information or investor relations inquiries, please contact us:
Vice President, The Howard Group
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the Company’s anticipated use of proceeds from the completed private placement financing. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct.
Forward looking information is typically identified by such words as “believe,” “expect,” “anticipate,” “intend,” and similar expressions, or are those that, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including but not limited to: the general state of the industry in which the Company operates; the state of financial markets generally; and other risks and factors that the Company is not aware of at this time.