Fengro Announces Closing of $410,000 Financing
Suite 1100 – 1111 Melville Street, Vancouver, B.C., Canada, V6E 3V6
Tel. 604-764-6126 Fax. 604-484-7143 | www.fengro.com
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
FENGRO ANNOUNCES CLOSING OF $410,000 FINANCING
JANUARY 22, 2020 - VANCOUVER, BRITISH COLUMBIA: Fengro Industries
Corp. (TSX -V:FGR) (“Fengro” or “the Company ”) announces that it has
received final approval from the TSXV and has closed funds of $410,000 of the
previously announced (see news release of November 5, 2019) non- brokered
private placement financing of common shares for $0.005 per common share (the
“Placement”). All securities issued in this Placement will have a resale restriction
hold period of 4 months and one day. The hold period will end on May 23, 2020.
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 (November 5, 2019) potential RTO with
Elemental Royalties Limited (the”Transaction”).
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 – John
Robins and James Paterson - each holding 26.505% of the issued and outstanding
common shares.
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.
Tembo Capital is subscribing for $60,000 of the Placement, and as an existing
approved Control Person will see its ownership reduced to 36.076%. Tembo’s
participation is permitted under the Policy 5.9 , MI 61 -101 exemption with Tembo
participating for less than 25% of the Company’s market capitalisation.
Suite 1100 – 1111 Melville Street, Vancouver, B.C., Canada, V6E 3V6
Tel. 604-764-6126 Fax. 604-484-7143 | www.fengro.com
Update on Sale of Brazilian Assets
The previously announced disposition of the Company ’s Brazil ian assets to
Geofoscal Comércio, Indústria, Representações e Transporte de Produtos
Agropecuários Ltda. was approved at the Company ’s shareholder s meeting on
October 18, 2019. The Company anticipates that the transaction will close in or
about January 22, 2020.
On behalf of Fengro Industries Corp.
Giles Baynham, Chief Executive Officer and Director
For more information contact:
Email: [email protected]
+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 of Fengro , the proposed terms and anticipated completion of the private
placement, and the proposed terms and condition of the definitive agreement, and the anticipated completion
of the Transaction. Actual results 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 and Fengro disclaims 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 TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in
the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of
this press release.