- FluroTech’s (TEST) investee, FluroTest LLC, has completed its internal reorganisation process
- FluroTest Systems and the company have entered into an LOI, proposing that FluroTech may acquire the remaining shares in FluroTest
- FluroTech has also entered into an agreement with Alumina Partners, for a drawdown equity facility of up to C$4 million
- The company will use the proceeds to subscribe for additional shares in FluroTest, and for general working capital
- FluroTech (TEST) is up 11.11 per cent and is currently trading for $0.20 per share
FluroTech’s (TEST) investee, FluroTest LLC, has completed its internal reorganisation process.
As a result of the restructuring, everyone who holds a member’s interest in the LLC has transferred that interest to FluroTest Systems. In exchange, they have received Class A common shares in FluroTest, on a one-for-one basis.
The LLC was originally formed through a joint venture between FluroTech, Alberta BioPhotonics, and Albany Medical College. It is now a wholly owned subsidiary of FluroTest, which FluroTech owns a 25 per cent interest in.
With the reorganisation complete, FluroTech and FluroTest have now entered into a letter of intent (LOI), which proposes that FluroTech may acquire the remaining shares in FluroTest.
The purchase of these shares would be satisfied through the issuance of common shares in FluroTech to FluroTest shareholders on a one-for-one basis.
If the proposed transaction does not result in the companies entering into a definitive agreement by June 30, 2021, the LOI will terminate.
FluroTech has also entered into an investment agreement with Alumina Partners, a subsidiary of private equity firm Alumina Partners LLC.
The company’s agreement is for a drawdown equity facility of up to C$4 million, which will be produced through multiple equity private placement offerings between FluroTech and Alumina.
The company will use the facility proceeds to subscribe for additional FluroTest shares, and for general working capital.
FluroTech’s President and CEO, Danny Dalla-Longa, commented on the company’s investment agreement for the equity facility.
“The financing facility will provide sufficient funds to FluroTech, a portion of which will be invested into FluroTest to cover the FDA and Health Canada approval processes, as well as initial pilot projects under discussions at large sporting arenas and venues, universities and retail outlets,” he said.
FluroTech (TEST) is up 11.11 per cent and is trading for 20 cents per share, as of 10:09am EST.