Asia Green Biotechnology Corp. obtains funding to continue its research activities; enters into an investor relations agreement
CALGARY, AB / ACCESSWIRE / August 5, 2021 / Asia Green Biotechnology Corp. (“Asia Green” or the “Company”) (CSE: ASIA) announced today that it has entered into an agreement with a director of the Company to enter into two separate financing transactions for the purpose of meeting certain expenses related to new research in progress and possible activities in progress or that may be initiated by the Company in accordance with the terms of its technology license agreements with InPlanta Biotechnology Ltd. (“InPlanta”), Pathway RX Inc. (“Course”) and Swysh Inc. (“Swysh”). The proceeds of these transactions will be used to facilitate certain research programs that are or can be undertaken jointly with Asia Green’s technology partners, or to advance programs that the Company is developing with its regional and academic partners in South Asia. East.
Under the first element of this financing, the Company will benefit from a line of credit of up to $ 200,000.00 which may be used to facilitate the completion of specific research programs. The facility will be secured by the granting of a convertible debenture in the name of the lender (the “Debenture”), which is administrator and related. The debenture bears interest at 12% and is convertible at any time after the date of issue at the option of the lender into common shares in the capital of the Company (the “common shares”) at a price of $ 0.08 per common share ( the “Conversion Price”). After 24 months from the date of issue, if the common shares are trading at or above $ 0.25, based on the volume weighted average price over the last 30 days of the common shares traded on the CSE , the Company will have the right, exercisable within 10 business days of the end of the trading period, to require the automatic conversion of the Debentures at the conversion price by giving the holder 10 business days written notice. The debentures are redeemable on demand with 10 business days notice to the Company in the event of a change of control of the Company.
Under the second element of this financing, the Company will complete a private placement (the “Private Placement”) of common share units (the “Units”), resulting in the issuance of 2,500,000 Units at a price of 0 .08 $ per Unit for gross proceeds to the Company of $ 200,000. Each unit is composed of (i) one common share and (ii) one common share purchase warrant of the Company (each warrant is referred to as a “warrant”). Each warrant entitles its holder to acquire one common share at a price of $ 0.15 per share for a period of 24 months from the date of issue.
The subscription proposed by a director of the Company to the Debenture Offer and the Private Placement of Shares constitutes a related party transaction within the meaning of National Instrument 61-101 respecting the Protection of Minority Security Holders in Special Transactions and the Policies of. the stock market. For such participation, the company will rely on exemptions from the formal valuation and minority shareholder approval requirements in accordance with sections 5.5 (b) and 5.7 (1) (a), respectively, of MI 61-101 on the basis that the company is unlisted on a specified stock exchange and that at the time the bids are agreed neither the fair market value of the object of the transaction nor the fair market value of the consideration for the transaction insofar as it involves an interested party (within the meaning of MI 61-101) in the offers, will exceed 25 percent of the market capitalization of the company calculated in accordance with MI 61-101. No special committee has been established in connection with the offers. The board of directors of the company has approved the bond and share offerings and no materially contrary opinion or abstention has been expressed or made by any director with respect to the bond or share offer. (other than director forbearance required under the Corporations Act (Alberta)). The material change report to be filed in connection with the Offering of Debentures and Shares will not be filed at least 21 days prior to the completion of the Offering of Debentures and Shares, as required by NI 61-101. The Company believes that this shorter period is reasonable and necessary in the circumstances given that the completion of the Debenture Offering will occur shortly before the issuance of this press release and the filing of such material change report.
The Company also announced today that it has engaged Market Speak of 15 Iceboat Terrace, Toronto, ON., To provide certain investor relations services for the Company. Market Speak will help the company by introducing investment groups and individuals and by helping the company communicate with investors and shareholders. Pursuant to the agreement dated August 3, 2021 between the Company and Market Speak (the “Agreement”), the Company will grant to Market Speak an option to purchase a maximum of 200,000 common shares at an exercise price. of $ 0.20 per share, will pay an initial fee of $ 10,000 and will reimburse Market Speak for all reasonable expenses incurred in performing its obligations under the Agreement.
Based in Toronto, Ontario, Market Speak has been providing investor and financial relations, business development solutions, strategic planning and financing services to public companies since 2020.
AGB is an early-stage international biotechnology company focused on the development, evaluation, testing, application, and ultimately the provision to market of proprietary organic hybridization technology and certain products derived from this technology. The company’s primary approach centers on planting, growing and harvesting new and valuable strains of hemp and related crops in commercial quantities under the terms of license agreements with InPlanta, Swysh and Pathway.
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Chief Executive Officer
The Company does not claim, either expressly or by implication, that a product manufactured in accordance with the terms of its license agreements has the capacity to eliminate, cure or contain Covid-19 (or the Coronovirus SARS-2), migraines or any other medical condition. right now.
Neither CSE nor its regulatory services provider (as that term is defined in CSE policies) accepts responsibility for the adequacy or accuracy of this release.
THE SOURCE: Asia Green Biotechnology Corp.
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