Gensource Potash Corporation ('Gensource' or the 'Company') (AIM/TSXV: GSP), a fertilizer development company focused on sustainable potash production, announces that on October 2, 2023 it completed the closing of its previously announced non-brokered private placement offering (the 'Offering') of units of the Company (each a 'Unit') at a price of $0.15 per Unit.
At the closing, the Company issued 4,863,588 Units for aggregate gross proceeds of $729,538.20. Each Unit consists of one common share in the capital stock of the Company (a 'Common Share') and one Common Share purchase warrant of the Company (a 'Warrant'). Each whole Warrant is exercisable for one Common Share (a 'Warrant Share') at an exercise price of $0.30 per Warrant Share for a period of 24 months following the date of issuance. As part of the Offering, certain directors and officers of Gensource, being Wayne Brownlee, Stephen Dyer, Amy O'Shea, Michael Ferguson, Alton Anderson, and Robert Theoret (the 'Insiders') purchased 3,333,333, 800,000, 180,255, 166,667, 150,000, and 133,333 Units, respectively. Participation by the Insiders in the Offering was considered a 'related party transaction' pursuant to Multilateral Instrument 61- 101 - Protection of Minority Security Holders in Special Transactions ('MI 61-101').
Gensource was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Insiders' participation in the Offering in reliance of sections 5.5(b) and 5.7(a) of MI 61-101. The Company was not in a position to file a material change report more than 21 days in advance of the closing of the Offering as the details of participation by the Insiders was not known at such time. Use of proceeds from the sale of the Units, as previously disclosed, will be used to complete fieldwork on its Tugaske potash project (the 'Tugaske Project') and general working capital purposes. The securities issued pursuant to this closing of the Offering are subject to a hold period of four months plus a day expiring February 3, 2024.
This closing of the Offering remains subject to receipt of the final approval of the TSX Venture Exchange.
Related Party Transaction
The participation in the Offering by Wayne Brownlee, Stephen Dyer, Amy O'Shea, Michael Ferguson and Alton Anderson, constitutes a related party transaction pursuant to Rule 13 of the AIM Rules for Companies, the rulebook governing the AIM Market of the London Stock Exchange plc. ('AIM'). In this context, Calvin Redlick, being the Director of the Company that did not participate in the Offering confirms having consulted with the Company's nominated adviser, Strand Hanson Limited
Admission to Trading on AIM and TVR
An application will be made for the admission (the 'Admission') of the 4,863,588 new Common Shares issued pursuant to the Unit component of the Offering, which will rank pari passu with existing Common Shares, to trading on the AIM. It is expected that the Admission will become effective, and trading will commence at 8 a.m. BST on October 6, 2023. Following Admission, the Company's total issued share capital will consist of 449,748,164 Common Shares of no par value. For the purposes of the UK's Financial Conduct Authority's Disclosure Guidance and Transparency Rules, the total number of voting rights in the Company will be 449,748,164.
Contact:
Tel: +1-306-974-6414
Caution Regarding Forward-Looking Statements
This news release may contain forward looking information and Gensource cautions readers that forward-looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of Gensource included in this news release. This news release includes certain 'forward-looking statements', which often, but not always, can be identified by the use of words such as 'believes', 'anticipates', 'expects', 'estimates', 'may', 'could', 'would', 'will', or 'plan'. These statements are based on information currently available to Gensource and Gensource provides no assurance that the actual results will meet management's expectations. Forward looking statements include estimates and statements with respect to Gensource's future plans, objectives or goals, to the effect that Gensource or management expects a stated condition or result to occur, including any offering of securities by Gensource. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated in such statements for many reasons such as: failure to finance the Tugaske Project or other projects on terms which are economic or at all; failure to settle a definitive joint venture agreement with a party and advance and finance the Tugaske Project; changes in general economic conditions and conditions in the financial markets; the ability to find and source off-take agreements; changes in demand and prices for potash; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Gensource's activities and other matters discussed in this news release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Gensource's forwardlooking statements. These and other factors should be considered carefully, and readers should not place undue reliance on Gensource's forward-looking statements. Gensource does not undertake to update any forward-looking statement that may be made from time to time by Gensource or on its behalf, except in accordance with applicable securities laws
GENSOURCE POTASH CORPORATION 
