Braingrid Announces Partial Conversion of Debentures, Director Resignation and Bridge Loan
Toronto, Ontario--(Newsfile Corp. - September 11, 2019) - Braingrid Limited (CSE: BGRD) ("Braingrid" or the "Company"), a global provider of cultivation analytics using its affordable, scalable and easy-to-deploy sensor platforms for precision agriculture, announced today that further to its press releases dated June 18, 2019, August 8, 2019, August 22, 2019 and August 30, 2019, European High Growth Opportunities Securitization Fund (the "Fund"), advised by Alpha Blue Ocean Inc. ("ABO"), has converted $160,000 of its $370,000 remaining principal amount of senior unsecured convertible debentures into 2,000,000 common shares of the Company (each a "Share") at an effective price of $0.08 per Share.
Pursuant to the agreement between the Fund and the Company, executed June 11, 2019, Braingrid has a cumulative make whole obligation to the Fund of $572,600, payable either in shares or cash at the Company's discretion, if cash the obligation would be netted against future debenture issuances.
The Company also announced today that David Posner has resigned from the board. Braingrid wishes to thank Mr. Posner for his contributions to the Company.
Braingrid also announced today that it has received a commitment for up to $60,000 of funding by way of a secured demand promissory note bearing interest at 7% per annum from Mika Holdings Limited, a related company controlled by family and friends of Ken Kadonoff, that is secured by expected scientific research and experimental development tax credits that are expected to be received in six to eight weeks.
ABO has advised Braingrid that the Company has not meet the conditions for an additional drawdown of capital from the Fund at this time. There is no assurance that Braingrid will meet the conditions for a drawdown from the Fund in the future. The Company is seeking additional sources of capital and is considering strategic alternatives however, without funding there is no guarantee that Braingrid can continue operations or remain a going concern.
Braingrid is a global technology company committed to the best interests of the precision agriculture industry for the long term. We provide valuable grow analytics by capturing real-time data using our technology platform to increase revenues, reduce costs, risks and improve yield - making it easier for the grower to operate efficiently and effectively. The Company is listed on the CSE under the symbol BGRD.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
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