26 Nov 2013capital raising announcement● NeutralMajor
The company signed a deal with Lincoln Park Capital under which Lincoln Park bought 113,636 shares for $100,000 and is obliged to buy up to $10 million more of stock at the company's choice over 24 months, once a registration statement the company must file is declared effective. The company also issued 242,529 shares to Lincoln Park and must issue up to 404,216 more as it sells. Sales are capped so Lincoln Park holds no more than 9.99%, and proceeds are meant for general expenses and working capital. This opens a new equity funding source, with dilution as shares are sold. The press release's company description (right to earn 51% of Terra from Corvus) does not mention the February 2013 letter of intent for full ownership, so that deal's status is not stated here.