Acquisition significantly increases PLAN's mineral operations, portfolio of eco-conscious product lines and global distribution infrastructure
VANCOUVER, BC, Feb. 22, 2022 /CNW/ - 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 its previously announced acquisition of Absorbent Products Ltd. ("APL"), a dominant manufacturer of mineral-based products derived from diatomaceous earth, zeolite, and bentonite (the "Acquisition").
PLAN will continue to support current APL business operations and eco-conscious product lines, while retaining all patents and intellectual property rights. In addition, PLAN intends to advance further development in sustainable cement, crop nutrition and other areas.
"This acquisition strengthens our leadership base and will help accelerate our sustainable innovation growth opportunities," said Steve Harpur, CEO of Progressive Planet. "We've now secured access to rich supplies of natural pozzolans including diatomaceous earth, bentonite and zeolite, all of which are key to our providing the next generation of materials, many of which have the added benefits of helping to minimize carbon footprints, improve biodiversity and sequester greenhouse gasses. On this day of celebration, we wish to extend our thanks to Peter Aylen and acknowledge his work to build this company over the last 3 decades. To the other shareholders who are remaining in management positions, we look forward to collaborating with you to expand Absorbent's products offerings to the agricultural and alternative cement products sectors."
With the completion of the acquisition, the Company will relocate its head office to Kamloops, British Columbia to be closer in proximity to its current and newly acquired mineral properties.
The Acquisition
Under the acquisition, the Company assumes control of all the outstanding securities of APL. At closing, the Company paid the former APL shareholders $8,922,933, assumed $2,118,231 of debt, and issued 3,428,570 common shares at a price of $0.35 per share. The shares issued have a four month hold period expiring June 19, 2022.
An additional $1.8 million will be paid in equity consideration on an annual basis over the next two years, with shares to be issued at a deemed price per share equal to the greater of (a) $0.35 per share or (b) the 50-day volume weighted average trading price of the Company's common shares in the days immediately preceding each issuance.
Private Placement Update
Further to the Company's news release on February 10, 2022, the Company anticipates a second and final tranche of its private placement offering of units to close on Wednesday, February 23, 2022. The second tranche will be for a minimum of 6.0 million additional units, each unit being comprised of one common share and one warrant exercisable at $0.60 per year for a period of two years from issuance. If, in the second year of the exercise period, the Company's common shares trade on the TSXV for greater than $0.75 per share for a period of ten trading days, the exercise period may be accelerated.
Proceeds from the second tranche closing will be used to assist retirement of the APL debt assumed by the Company under the acquisition, as described above, or for integrating the Company's comminution business into APL's premises as part of its head office relocation.
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, animal health 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.
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.
Forward-Looking Statements:
This news release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the completion of the proposed private placement financing offered by the Company. 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 Company's ability to complete the proposed private placement; 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.
SOURCE Progressive Planet Solutions
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