The market cap of MustGrow Biologics Corp (OTCQX: MGROF) reached $116.04 million after its closing price reached $2.6700 after a rise of 10.85% last session. Recent trading volumes for MGROFF stock were higher than their average daily volume of 24.65K shares. Additionally, the MGROF stock has been trading between $2.5000 and $2.8700. There are 43.46M shares outstanding compared to 31.04M float of the pink sheets MGROF. The MGROF stock soared after an upsized private placement.
How did MGROF upsize the placement?
MustGrow is a public biotech company specializing in plants and animal health and is a leading provider of biological solutions for high value crops like fruits, vegetables, and other crops. In an effort to defend plants from pests and diseases, MGROF has developed and owns a USEPA-cleared natural product. With the approval from regulators, MGROF has produced TerraMG, a concentrated mustard extract biopesticide that can be applied using standard drip or spray equipment, providing enhanced functionality and performance features. The mustard-derived extract technologies from MGROF are potentially applicable to a wide range of industries, including pre-plant soil treatment, weed control, and post harvest disease control as well as food preservation.
In an announcement made Wednesday, MustGrow announced that it increased the size of its previously-announced C$2.0 million non-brokered private placement to approximately 2.7 million units and received approximately C$6.9 million in gross proceeds.
- In the Private Placement, Gluskin and Gluskin-related parties each made a subscription investment of C$1.0 million under the same terms and conditions.
- MGROF shall issue one Unit in each Unit consisting of one common share and one-half of one common share purchase warrant.
- Following the closing of the Private Placement, the full Warrant holder shall have the right to acquire one common share in MGROF at a price of C$4.00 for a period of 24 months.
- Securities issued in the Private Placement are subject to a four-month hold period that ends one day after the Private Placement closes.
- As a condition of the Private Placement, MGROF must receive all necessary approvals, including approvals of the Canadian Securities Exchange, and any applicable securities regulatory bodies
- MGRFO may not offer or sell securities in the US.
What steps will MGROF take?
In addition to funding the development of its patented technology pipeline, MustGrow (MGROF) plans to use the proceeds from the Private Placement for working capital and general corporate purposes. MGROF now anticipates that the Private Placement will be closed by October 6, 2021.