Global Seafood Technologies announced yesterday [Wednesday] that it has entered into a common stock purchase agreement with Chicago-based institutional investor Fusion Capital Fund II, LLC.
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Fusion Capital has agreed to buy up to US$10m of the company’s common stock over a 40-month period. The purchase price of the shares to be sold to Fusion Capital will be based upon the market price of Global Seafood’s common stock at the time of sale without any fixed discount. The company has the right to control the timing and the amount of stock sold to Fusion Capital.
The proceeds from the funding will be used for working capital and general corporate purposes, according to Brent Gutierrez, President and CEO of Global Seafood.
“The flexibility and favourable terms of this financing is yet another positive milestone in our efforts to enhance our financial position and to gain access to capital necessary to accelerate the expansion of our fast growing, high margin aquaculture and frozen recreational fishing bait businesses,” stated Gutierrez.
Global Seafood intends to periodically evaluate market conditions and its capital needs in order to determine the amount of stock it will sell to Fusion Capital. The commencement of the funding is subject to certain conditions including the effectiveness of a registration statement with the US Securities and Exchange Commission (SEC).
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By GlobalDataThe company expects to file a registration in a few weeks that will have a detailed description of the transaction, according to Gutierrez.
