Key Takeaways
- MustGrow Biologics announced a $2 million line of credit (LOC) with Canadian Imperial Bank of Commerce, guaranteed by Export Development Canada (EDC).
- The LOC will help fund production of the company’s mustard-derived biofertility product TerraSante™ to meet rising U.S. demand.
- Funds will also support working capital for Canadian sales and distribution through NexusBioAg.
- The LOC carries an interest rate of Canada’s prime rate +1% per annum, currently 5.95%.
- MustGrow plans to pursue an increased LOC size to meet accelerating demand for TerraSante™.
MustGrow Biologics Secures Financing
MustGrow Biologics Corp. has finalized a $2 million line of credit with Canadian Imperial Bank of Commerce, guaranteed by Export Development Canada. The financing facility provides the company with resources to support production and market expansion for its biofertility and crop input solutions.
The line of credit is structured with an annual interest rate linked to Canada’s prime rate plus 1.00%, currently amounting to 5.95%.
Focus on TerraSante™ Production
The funds will be directed primarily toward producing TerraSante™, MustGrow’s organic, mustard-derived biofertility product. Demand for TerraSante™ has been increasing among large U.S. commercial farming operations, prompting the company to build additional inventory.
“We are seeing significant uptake from large U.S. commercial farming operations, which further validates the effectiveness, efficiency, and economics of our organic biofertility product TerraSante™,” said Corey Giasson, President and CEO of MustGrow.
Supporting Canadian Operations
In addition to U.S. expansion, the line of credit will provide working capital for NexusBioAg, MustGrow’s Canadian sales and distribution arm. The division focuses on delivering sustainable crop solutions to farmers across Canada.
Giasson emphasized that the facility will help both sides of the business: “Utilizing our LOC on such favourable terms will enable us to build inventory to meet increasing U.S. demand for TerraSante™ and support NexusBioAg’s growing operations here in Canada.”
Outlook For MustGrow
MustGrow intends to seek a larger line of credit as demand for TerraSante™ continues to rise. With this financing, the company is positioned to advance its dual-market growth strategy in both the U.S. and Canada, while reinforcing its commitment to providing sustainable biological alternatives to conventional agricultural inputs.
