Sage Potash Corp. (TSXV: SAGE) (OTC: SGPTF) ("Sage" or the "Company") is pleased to announce that its common shares will resume trading on the TSX Venture Exchange ("TSXV") at 8 a.m. EST on September 11, 2024.
The shares were halted from trading on September 9, 2024, as a result of the TSXV's request to review the transaction between the Company and a subsidiary of International Process Plants ("IPP") as a "Fundamental Acquisition", as that term is defined under TSXV policies. The Company's purchase of equipment from IPP for $12.6 million was previously reported in a news release dated September 9, 2024.
In the same news release, the Company announced a non-brokered private placement (the "Private Placement") of 37.6 million common shares at $0.20 each for gross proceeds of $7.52 million and convertible debentures with an aggregate principal amount of $3.78 million. The gross proceeds of the Private Placement of $11.3 million will be used to satisfy the obligations under the Purchase Agreement and for equipment-related purposes such as packing, logistics, modifications, interest and general working capital.
The Private Placement is integral to the proposed transactions under the Purchase Agreement and thus the Company will be relying on the "part and parcel pricing exception" provided for in the policies of the TSXV. The Private Placement and transactions contemplated under the Purchase Agreement are subject to acceptance by the TSXV. All securities issued under the Private Placement and the Purchase Agreement will be subject to a hold period of four months.
