Toronto, Ontario / ACCESSWIRE / August 2, 2016 / SusGlobal Energy Corp. (“SusGlobal Energy”) or the (“Company”) is pleased to announce that it has entered into an agreement for a proposed financing of up to USD$7,000,000 through the issuance of up to 140, 9.00% Senior Convertible Debentures issued in denominations of USD$50,000, which securities are exercisable and convertible into an aggregate number of shares equal to 1,400,000 at any time after the issuance date providing thirty (30) days written notice to the Company at a conversion price of USD$5.00 per common share to the Debenture holder.
The Senior Convertible Debentures can be redeemed in whole or in part by the Company any date after the first year from the issuance date with thirty days written notice. This allows the Company the option to redeem part or all of any outstanding Senior Convertible Debentures for part or all of the outstanding principal value upon exercise of its right of redemption with a 90 day interest penalty calculated on the amount being redeemed. Upon receipt of a written Redemption Notice from the Company, Debenture holders will have the option to exercise their conversion option at the applicable conversion price in writing no later than 10 days prior to the Redemption Date.
The first Funding Date will consist of a minimum of USD$1,000,000 of gross proceeds and will be transacted on or prior to Wednesday August 10th, 2016.
The Company will use the majority of the net proceeds received from this financing to primarily fund the Georgian Bluffs Biogrid Digester partnership contract jointly entered into with the Township of Georgian Bluffs and the Township of Chatsworth with the remaining proceeds to be used for general corporate purposes (see press release dated June 7, 2016).
Phoenix Corporate Finance Inc. acted as the Advisor and Meadowbank Asset Management Inc. as the Selling Agent and Exempt Market Dealer. The Company will pay a 6% Selling Commission and a 2% facilitation fee, plus an aggregate of 84,000 restricted common shares to the Advisor.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Phoenix Corporate Finance Inc.
Phoenix Corporate Finance Inc. is an independently owned mid-market corporate finance firm which provides professional financing advisory and procurement services to small and medium-sized companies. The objective of Phoenix is to position its client companies for the optimum number of financing options beyond what is available from banks and other financial institutions. For more information, contact one of our Corporate Finance Team experts at www.phoenixcorpfinance.ca
About SusGlobal Energy Corp.
SusGlobal Energy Corp. is a renewable energy company focused on acquiring, developing and monetizing a portfolio of proprietary technologies in the waste to energy application globally. It is management’s objective to grow SusGlobal Energy into a significant sustainable waste to energy provider. For more information, please visit the Company’s website at: www.susglobalenergy.com
SOURCE: SusGlobal Energy Corp.
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