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The Company must complete a minimum 10:1 consolidation of its common shares as part of the TSXV approval of the Placement, prior to the TSXV lifting the current trading halt. The completion of the consolidation will occur irrespective of the completion of the previously announced (
No finders fees have been paid in connection with the Placement.
The majority of the proceeds of the Placement will be used to repay existing Company trade creditors (including legal, accounting, marketing, regulatory, various general accrued working capital and accrued employee costs). The Placement will significantly reduce its working capital deficit.
Control Persons
As a result of the closing, there will be two new control persons created -
Arms-length shareholder written approval of the new control persons has been received - the creation of new control persons requires a minimum of 50% and one common share of the currently issued and outstanding shares.
Update on Sale of Brazilian Assets
The previously announced disposition of the Company'sBrazilianassets toGeofoscal Comercio,Industria,RepresentacoeseTransportedeProdutos Agropecuarios Ltda.was approved at the Company's shareholders meeting on
On behalf of
For more information contact:
Email:info@fengro.com
+1 (604) 764 6126
FORWARD LOOKING STATEMENTS
Certain information contained in this press release constitutes "forward-looking information", within the meaning of applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "aims", "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "target", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to". Forward looking statements contained in this press release may include statements regarding the future operating or financial performance ofFengro, the proposed terms and anticipated completion of the privateplacement, and the proposed terms and condition of the definitive agreement, and the anticipated completion of the Transaction. Actualresults and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release andFengrodisclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Neither the
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