SustainCo (TSX-V:SMS, StockForum), a Toronto-based provider of sustainable infrastructure solutions and services for new build or retro-fit facilities, announced today that the company was going to implement a corporate and financial restructuring plan.
This plan was to prepare the company for building out its current SustainCo Solutions and Services and Clean Energy Department.
The restructuring plan calls for SustainCo to divest itself of all issued shares in Urban Mechanical Contracting, resulting in a $3.0 million in cash and freedom to pursue the aforementioned divisions.
The company will also convert its indebtedness into a secured note offering and then put forward a non-brokered private placement offering that, with the secured note offering, will provide the necessary capital to complete the company's transition.
According to the news release, “The Company will also continue to strive to be a thought leader on sustainability issues in the real estate asset management sector, investing in and developing technologies and solutions to support its two core groups.”
SustainCo was in the news recently when the company announced the proposed sale of Urban Mechanical Contracting.
Shares jumped 110% on the news to $0.105 per share.
Currently there are 29,440,217 shares outstanding with a market cap of $3.09 million.