Forterra Completes First Closing of Private Placement
July 10 2008 - 11:52AM
Marketwired
TORONTO, ONTARIO , an emerging leader in the production and sale
of premium organic soil-enrichment products based on worm castings,
today announced that it has raised gross proceeds of approximately
$2,196,500 through the first closing of a private placement of
14,643,333 Units. As announced on June 27, 2008, the Units consist
of one common share and one-half common share purchase warrant
entitling the holder to purchase one common share at $0.25 per
warrant on or before July 9, 2010.
The company expects to complete a second and final closing of
the private placement of Units on July 15, 2008 for gross proceeds
of approximately $335,000.
The common shares and common share purchase warrants from the
first closing are subject to a four-month hold period expiring on
November 10, 2008.
"We are very pleased that this private placement was well
received by institutional investors," said Donald Green, Chairman
and Chief Executive Officer. "Approximately 67% of the private
placement was subscribed for by six prominent Canadian-based
investment fund managers.
"We will be using these funds to strengthen our balance sheet
and to provide the working capital needed to support our increasing
production of our solid Forterra Worm Castings and liquid Forterra
Worm Tea Castings products." Mr. Green added.
Euroglobal Capital Partners Inc. acted as agent for the
offering. The agent received non-transferable agent's warrants to
acquire 1,003,800 Units at a price of $0.15 per Unit at any time on
or before July 9, 2010.
Forterra also announced that it has granted incentive stock
options to purchase a total of 3.8 million common shares. This
includes options to purchase 3.1 million common shares granted to
directors of the company. The options are exercisable for $0.15
each and will expire on July 9, 2013. One-half of the options will
vest on January 9, 2009 and the balance will vest on July 9,
2009.
About Forterra Environmental Corp.
Forterra manufactures and markets powerful and environmentally
friendly soil enhancers, using worm castings, which boost fertility
while restoring the soil with organic matter for sustainable,
longer-term benefits, including stronger root growth, and drought
and pest resistance. Forterra products contain only organic
material. They are ideal for golf courses, sports fields, lawn
care, parks, nurseries, orchards, and vineyards. Essentially,
Forterra uses red wriggler worms to convert organic waste into
vermicompost or worm castings. Worm castings contain
micronutrients, which are required for healthy plant development.
Worm castings also contain microbes, which increase the rate at
which plants take up available macronutrients and micronutrients.
Further information is available on the company's website at
www.forterra.com.
Forward-Looking Statements
This news release contains forward-looking statements based on
current expectations. These forward-looking statements entail
various risks and uncertainties that could cause actual results to
differ materially from those reflected in these forward-looking
statements. Such statements are based on current expectations, are
subject to a number of uncertainties and risks, and actual results
may differ materially from those contained in such statements.
These uncertainties and risks include, but are not limited to,
availability of resources, competitive pressures, changes in market
activity, and regulatory requirements. Risks and uncertainties
about Forterra's business are more fully discussed in the company's
disclosure materials, including its annual information form and
MD&A, filed with the securities regulatory authorities in
Canada. Forterra assumes no obligation to update any
forward-looking statement or to update the reasons why actual
results could differ from such statements.
The TSX Venture Exchange Inc. has neither approved nor
disapproved of the contents of this news release.
Contacts: Forterra Environmental Corp. Donald Green Chairman and
Chief Executive Officer (905) 634-8647 Email: green@forterra.com
Website: www.forterra.com Wertheim + Company Inc. Richard W.
Wertheim Investor and Media Relations (416) 594-1600 Cell: (416)
518-8479 Email: wertheim@wertheim.ca
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