TrustBIX (TBIX) has announced a letter of intent and concurrent private placement.
The company signed the non-binding letter of intent to acquire a Canadian private company that provides tracking solutions for high-value agricultural equipment.
It will issue 10M shares plus up to an additional 20M shares based on certain financial milestones within one year after closing.
The parties intend to negotiate a definitive agreement by February 18, 2022.
“We view this transaction as another key step in our growth strategy for building depth and scale in the agri-tech industry,” stated Hubert Lau, CEO of TrustBIX.
As part and parcel of the acquisition, TrustBIX intends to complete a non-brokered private placement of up to 11,111,111 units priced at C$0.18 for proceeds of up to $2M.
Each unit is comprised of one TrustBIX common share and one common share purchase warrant.
Each warrant entitles the holder to purchase one common share priced at $0.30 for 18 months from the date of closing.
TrustBIX provides agri-food traceability and chain of custody value solutions.
TrustBIX (TBIX) closed up by 6.06 per cent trading at $0.175 per share.