- Agricultural technology company EarthRenew (ERTH) has entered into a financing facility with Alumina Partners
- The at-will facility will provide the company with up to C$10 million, over a period of 24 months
- During the two-year period, EarthRenew can draw down equity private placement tranches of up to $500,000 each
- The company will use the funds for various purposes, including improvements on its facility and operations in Strathmore
- EarthRenew (ERTH) is up 14.89 per cent and is currently trading at 27 cents per share
Agricultural technology company EarthRenew (ERTH) has entered into a financing facility with Alumina Partners.
Alumina Partners is an affiliate of Alumina Partners LLC, a private equity firm based in New York.
EarthRenew’s investment agreement with Alumina provides the company with an at-will financing facility of up to C$10 million. Over a period of 24 months, the company can draw down equity private placement tranches of up to $500,000 each.
Each of those tranches will consist of units which contain one common share in EarthRenew and one common share purchase warrant. These units will be available at 15 to 25 per cent discounts, when compared to the company’s closing price the day before a drawdown notice.
EarthRenew will use the funds from the facility’s financings for a variety of purposes. These include, in particular, engineering and construction costs for the redevelopment of the company’s facility in Strathmore. Some funds will also go towards working capital for the ramp-up of operations at that facility.
Proceeds will also be used for capital equipment purchases, feasibility on future projects, field and research trials, market development activities, and general corporate purposes.
EarthRenew’s CEO, Keith Driver, commented on the benefits provided by the company’s equity facility with Alumina Partners.
“The facility provides us with comfort that we have an option to secure the capital necessary to accelerate the Strathmore facility recommissioning and pursue US expansion opportunities over the next 12 months,” he said.
EarthRenew (ERTH) is up 14.89 per cent and is trading at 27 cents per share at 9:59am EDT.