Share Holder Update
Vancouver, BC - TheNewswire - March 31, 2023 - Clean Seed Capital Group Ltd. (“Clean Seed” or the “Company”) (TSXV:CSX) is pleased to provide a shareholder update.
Advancing Mahindra MOU
Feb 23rd, 2023: Clean Seed Signs MOU in Mahindra and Mahindra.
Clean Seed signed a memorandum of understanding (the MOU) with Mahindra and Mahindra Ltd. to bring the SMART Seeder technology to India and to collaborate on other related opportunities to benefit each other's business interests.
Part of the Mahindra Group, Mahindra's farm equipment sector (FES) is the world's largest tractor company by volume and owns India's two largest selling tractor brands. With a presence in over 50 countries, Mahindra FES has technology centers in Japan, Turkey, Finland and India, with a wide range of tractors and a growing presence in farm machinery for crops across the value chain.
March 1, 2023: Clean Seed Hosts Special Event in India with Regional Partners.
Clean Seed was proud to host a special event in India along with the company's partners Northern Farmers Producer Company Ltd. Mega Farmer Cooperative (Northern Farmers Mega FPO), Chandigarh University (CU) and Confederation of Indian Industry.
This energetic event welcomed the Hon. Scott Moe, the Premier of Saskatchewan, the Right Hon. Stephen Harper, former Prime Minister of Canada, and the Honourable JP Dallal at Pehowa, Minister of Agriculture, Haryana, to discuss the company's efforts to bring its Canadian SMART Seeder technology and MINI-MAX™ to India to usher in a new era of sustainable farming in the region. After the successful meetings Clean Seed completed MINI-MAX™ corn planting demonstrations with the company's partners, Northern Mega Farmers FPO, Mahindra, FES and CU.
Under the terms of the MOU with Mahindra, the company is advancing toward the completion of the first of two Alpha preproduction MINI-MAX™ units. Mahindra is currently manufacturing the frames and hoppers, while Clean Seed is finalizing the software adaptations and metering systems for the field-ready machines. These MINI-MAX™ units are expected to be completed in May, 2023, for the company's field planting programs.
Further to the news release dated Sept. 12, 2022, the company is also pleased to report that Northern Mega Farmers FPO have confirmed its initial order of 1,000 MINI-MAX™ machines with Mahindra further laying the groundwork for the first production run from Mahindra in India.
Australia patent approval
The company has also received allowance for the grant of patent in Australia one of the company's key market goals for its flow control technology and has submitted the necessary filings to have the patent formally granted. Flow control is one of the core innovations in the company's on-demand air system for the SMART Seeder MAX technology, dovetailing the innovations and processes between the company's staged air transfer system and its variable ratio metering system.
This regional expansion to the flow control patent family further strengthens the company's variable rate metering patent family, which effectively extends the overall duration of protection on the portfolio.
Private placement bridge financing
Clean Seed has finalized a non-brokered private placement of promissory notes for gross proceeds of $1,203,000 for working capital purposes and to finance the company's objectives for the spring under the MOU with Mahindra. The notes will mature 12 months from the date of issue. The company may elect to satisfy the interest payments due under the notes by the issuance of common shares subject to acceptance of the TSX-V at each such instance. In connection with the notes, the company will issue an aggregate of 1,415,293 bonus shares to the subscribers at a market price of 17 cents per share. Clean Seed will also issue 376,470 shares to Cormark Securities Inc. as a finder's fee for subscribers that Cormark introduced to the company.
Insiders of the company purchased a note in the principal amount of $203,000 in the offering. The company has relied on the exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101 in respect of such insider participation.
Any shares to be issued pursuant to the notes will be subject to a regulatory hold period of four months and a day in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws, and such other further restrictions as may apply under foreign securities laws. Closing of the placement is subject to receipt of TSX-V approval.
Clean Seed restructures promissory notes
The company has amended two promissory notes aggregating $1,410,500 of principal, whereby the lenders have agreed to defer the maturity date of the promissory notes from March 31, 2023, to Sept. 30, 2023. As consideration for amending the promissory notes, the company will extend the expiry date of three million outstanding bonus warrants from March 31, 2023, to Sept. 30, 2023. Each bonus warrant will entitle the holder to purchase one common share of the company at a price of 20 cents per share until Sept. 30, 2023. The extension will be subject to approval of the TSX-V.
About Clean Seed Capital Group Ltd.
The common shares of Clean Seed Capital Group Ltd. are listed on the TSX Venture Exchange and trade under the symbol "CSX”.
We are a team of innovators and business management professionals with a proven track record of game changing innovation and production of patented agricultural technologies at an incredibly high level. We pride ourselves as progress facilitators that turn solutions for modern agricultural problem into commercially viable products to fulfill new demand.
Clean Seed’s SMART Seeder MAX™ technologies are revolutionary seeding tools that utilize the unique synergy of sophisticated electronic metering and intuitive software control putting row-by-row variable rate technology at the forefront of agricultural innovation. Our innovations create a new class of highly accurate seeding equipment designed specifically for today’s farmer.
For further information please contact Clean Seed at 604-566-9895 and visit our website at www.cleanseedcapital.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The common shares of Clean Seed Capital Group Ltd. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.