Ostara Provides Corporate Update: Additional Growth Capital from Equity Funding and New Credit Facility; New Board Director, Monty Bayer
VANCOUVER, BC, CANADA and RIVERVIEW, FL, USA, Jan. 28, 2020 (GLOBE NEWSWIRE) — Ostara Nutrient Recovery Technologies Inc. (“Ostara” or the “Company”) today provided an update on its progress of key initiatives in support of strategic growth.
“The ag-tech space is evolving, and Ostara is driving an undeniable industry shift towards circularity, offering farmers profitable, regenerative solutions for phosphate-use in their fields,” says Dan Parmar, Ostara President and CEO. “Closing the second tranche of our current equity financing, with the strong support of our key investors as we continue to scale, is fundamental to our success. We welcome the industry expertise of Monty Bayer to our Board as we enter another period of strong growth.”
CORPORATE FINANCE UPDATE Closing of Second Tranche of Previously Announced Equity Financing On December 17th, 2019, the Company closed the second tranche of its previously announced equity financing, for additional proceeds of approximately US$5 million (the “Financing”). The Financing is being co-led by long-standing Ostara investors, Wheatsheaf Group Limited and VantagePoint Capital Partners, with follow-on participation by other existing Ostara shareholders, including key Ostara fertilizer distribution partner, Taurus Agricultural Marketing Inc.Closing of Secondary Working Capital Credit Facility On December 23rd, 2019, Ostara closed a new US$5 million credit facility (the “WC Credit Facility”) with a Canadian based lender. The WC Credit Facility is intended to provide working capital for the Company’s on-going fertilizer production scale-up and augments the Company’s existing credit facility with Comerica Bank.