$600,000 Dedenture NEWS 4 Bonuse shares for every dollar invested.... BOD line their pockets before take off..... Sounds good to me...
Raising gross proceeds of $600,000 through private placement of non-
convertible secured debentures
- Proceeds to be used for working capital and purchase of automation
equipment
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PUSLINCH, ON, March 27 /CNW/ - Forterra Environmental Corp. (TSX-V: FTE-V), an emerging leader in the production and sale of premium organic soil-enrichment products based on worm castings, today announced it is carrying out a non-brokered private placement of 12% non-convertible secured debentures to raise gross proceeds of $600,000.
The offering has been fully subscribed by accredited investors, including members of the company's Board of Directors. The offering is expected to close on or about March 31, 2009 and is subject to approval by the TSX Venture Exchange.
The debentures will become due and payable on the maturity date of March 31, 2011, subject to earlier redemption by Forterra after six months. Interest on the debentures is calculated and payable quarterly after the first nine months of the term commencing on December 31, 2009. In addition, 2,400,000 of Forterra's common shares at a deemed value of $0.05 per share will be granted as a bonus to the investors. Investors will receive four such bonus shares for each dollar invested.
Forterra will use the proceeds of this financing for working capital to support its anticipated increased production volume and sales, and to purchase automation equipment for its plant in Puslinch, Ontario. The company expects that the new equipment will result in improved operating efficiency and lower production costs.
About Forterra Environmental Corp.
Forterra manufactures and markets environmentally friendly soil enhancers, using worm castings, which boost fertility while restoring the soil with organic matter for sustainable, longer-term benefits, including stronger root growth, and drought and pest resistance. Forterra products contain only organic material. They are ideal for golf courses, sports fields, lawn care, parks, nurseries, orchards, and vineyards. Essentially, Forterra uses red wriggler worms to convert organic material into vermicompost or worm castings. Worm castings contain micronutrients, which are required for healthy plant development. Worm castings also contain microbes, which increase the rate at which plants take up available macronutrients and micronutrients. Further information is available on the company's website at https://www.forterra.com\">www.forterra.com.
Forward-Looking Statements
This news release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, availability of resources, competitive pressures, changes in market activity, the ability to sign contracts with customers, the development of markets for worm castings, its ability to breed and maintain a sufficiently large worm population, and regulatory requirements. Risks and uncertainties about Forterra's business are more fully discussed in the company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. Forterra assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements.
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Neither the TSX Venture Exchange Inc. 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.
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