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Progressive Planet arranges new credit facilities for up to $300,000 with Bank of Montreal

The loans will be used to purchase equipment to increase the company's capacity to produce fine rock powders

Progressive Planet Solutions Inc - Progressive Planet Solutions Inc has arranged for new credit facilities for up to $300,000 with Bank of Montreal
Both loans have been personally guaranteed by David Richardson, the company’s controlling shareholder

Progressive Planet Solutions Inc (CVE:PLAN), an emerging leader in the commercialization of natural pozzolans to reduce the carbon footprint of cement production, said it has arranged for new credit facilities of up to $300,000. 

In a statement Tuesday, the company said the facilities include a fixed-rate term loan for up to $200,000 to finance the purchase of equipment to increase its capacity to produce fine rock powders (comminution) from both its own mineral assets as well as the ability to complete toll processing contracts for third parties.

The loan is for a five-year term with an interest rate equal to prime plus 3%. In addition, the Bank of Montreal has provided an Operating Demand Loan of up to $100,000 with an interest rate of prime plus 2.5%.

READ: Progressive Planet Solutions appoints new independent director

Progressive Planet said both loans have been personally guaranteed by David Richardson, the company’s controlling shareholder, and it intends to issue a total of 6 million non-transferable warrants to him. 

The exercise price is set at $0.05 per warrant with 2 million warrants having a term of one year and 4 million warrants having a term of three years, subject to acceleration if, and as, any indebtedness is repaid on the fixed-rate term loan. 

CEO Steve Harpur said the debt financing will assist the company as its move towards monetizing its natural pozzolan assets from the Z-1 Quarry near Cache Creek, British Columbia, while also enabling the company to begin generating revenue from third-party comminution toll processing.

“Mr Richardson began investing in Progressive Planet in early 2018 and has remained a supporter of our vision to create pozzolan-based cementitious products," Harpur said. 

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

Quick facts: Progressive Planet Solutions Inc

Price: 0.055 CAD

TSX-V:PLAN
Market: TSX-V
Market Cap: $1.85 m
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