ProSep Strengthens Balance Sheet with New Initiative
ProSep has announced an initiative to strengthen its balance sheet. The plan includes:
- An intention to file a preliminary short form prospectus for a Rights Offering to the Shareholders as of a record date for the Rights Offering to raise a maximum of $10,000,000; and
- An agreement with the holders of its existing debentures to convert $7,845,620 of indebtedness into common shares of ProSep by amending the terms of the Company's existing Debentures and to participate in the Rights Offering so as to ensure that ProSep realizes gross proceeds of at least $4,840,000.
The effect of the Rights Offering, expected to close in the third quarter, taken together with the amendments to the Debentures, will be to (i) reduce indebtedness under such Debentures by $7,845,620, (ii) reduce the Company's short term debt obligations by over $3,700,000 and (iii) provide additional liquidities for general working capital purposes.