The Prospector News

DuSolo Secures $3.2 Million in Financings

You have opened a direct link to the current edition PDF

Open PDF Close

Share this news article

DuSolo Secures $3.2 Million in Financings






DuSolo Fertilizers Inc. (TSX-V:DSF) is pleased to announce that it has closed the initial tranche of its non-brokered private placement previously announced on September 14 and September 18, 2015 and has signed a one-year convertible loan agreement, for aggregate gross proceeds of C$3.2 million.

“We are encouraged by the support we received from the market for this financing,” said Darren Bowden, Chief Executive Officer. “DuSolo is now in a financial position where we can move forward with our plans to improve our operations, increase sales and marketing activities, and begin exploration at our newly acquired asset.”

A total of C$2,434,500 has been raised through the issuance of 24,345,000 units of the Company at a price of C$0.10 per Unit. Each Unit consists of one common share of the Company and one-half Common Share purchase warrant. Each whole Warrant entitles the holder to acquire one common share at an exercise price of C$0.15 for a period of 36 months from the closing date of the Private Placement. Lead orders came from existing shareholders including M&G Investment Management and the Tembo Capital group as well as from certain directors of the Company. Due to the significant interest DuSolo received in the Private Placement, it is considering subscriptions in excess of C$2.5 million.

The Company also announces that it has executed a one-year convertible loan agreement with Tembo Capital pursuant to which Tembo Capital will advance $750,000. The Loan has an interest rate of 10%, an establishment fee of 5%, and Tembo Capital may, at any time, convert the Loan and all interest and fees accruing thereunder into Units carrying the same terms as issued in the Private Placement.

The Company has used approximately $800,000 from the proceeds of the Private Placement to repay the principal amount and all interest and fees accrued under the three-month bridge loan from Tembo Capital. The remainder of the proceeds from the Private Placement and the Loan will be used to for working capital as DuSolo continues to improve its operations and market its Direct Application Natural Fertilizer products. In addition, funds will be used further define the resource at Bomfim, and begin the exploration program at the Company’s new asset, Sao Roque.

Following closing of the Private Placement, Tembo Capital holds 28,063,519 common shares of the Company representing 18.15% of the Company’s issued and outstanding shares. Pursuant to the policies of the TSX Venture Exchange (the “TSX-V”), a company must obtain disinterested shareholder approval prior to the issuance of securities to a shareholder that would result in that person becoming a “Control Person” as defined in the policies of the TSX-V. DuSolo has agreed to seek such approval with respect to the issuance of securities to Tembo Capital pursuant to the Loan and exercise of any Warrants it holds at its next shareholder meeting.

All securities issued in connection with the Private Placement and the Loan will be subject to a minimum four-month hold period. The Company paid a commission of C$109,060 in cash and 1,090,600 brokers warrants on a portion of the proceeds raised from the sales of Units in the first tranche of the Private Placement.

Tembo Capital is an “insider” and a “related party” (as such terms are defined in applicable securities laws) of the Company and accordingly, Tembo Capital’s participation in the Private Placement and the Loan are “related party transactions” under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Tembo Capital’s participation in the Private Placement and the Loan will be exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 because at the time the transactions, neither the fair market value of the Units acquired by Tembo Capital, or the consideration paid therefor or the principal amount of the Loan exceeds 25% of the Company’s market capitalization.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.


DuSolo Fertilizers Inc. is focused on developing a fully integrated process to produce and sell phosphate based fertilizers within the Cerrado region of Brazil as part of a nationwide effort, incentivized by the government, to increase supply of domestically sourced fertilizers and achieve agricultural self sufficiency.

Posted October 5, 2015

Share this news article


Alio Gold Signs $15M Financing Package for Florida Canyon

Alio Gold Inc. (TSX:ALO) (NYSE AMERICAN: ALO) announces that it h... READ MORE

November 14, 2019

Canada Cobalt Closes $1.4 Million Financing

Canada Cobalt Works Inc. (TSX-V: CCW) (OTC: CCWOF) (Frankfurt: 4T... READ MORE

November 14, 2019

Wallbridge Expands the Lower Tabasco Zone and the Area 51 Zones to the Southwest

Wallbridge Mining Company Limited (TSX:WM) (FWB: WC7) is pleased ... READ MORE

November 14, 2019

Brixton Metals Drills 37.78m of 1.17 g/t Au at the Outlaw Zone, Including 12.00m of 3.28 g/t Au and 3.00m of 9.06 g/t Au at its Thorn Project

Brixton Metals Corporation (TSX-V: BBB) (OTCQB: BBBXF) is pleased... READ MORE

November 14, 2019

Defense Metals Drills 3.12% Total Rare Earth Oxide Over 105 Metres and Extends Mineralized Zone at Wicheeda Rare Earth Element Deposit

Defense Metals Corp. (DEFN: TSX-V ) (DFMTF: OTCQB) (35D: FSE) ann... READ MORE

November 14, 2019

Copyright 2019 The Prospector News - Site design by Spyderbaby Productions