(TheNewswire)
Vancouver,B C -TheNewswire - March 31, 2023 - Clean Seed Capital Group Ltd. (“ Clean Seed ” or the“ Company ”) (TSXV:CSX) is pleased to provide a shareholderupdate.
Advancing Mahindra MOU
Feb 23 rd , 2023: Clean Seed Signs MOU in Mahindra andMahindra.
Clean Seed signed a memorandum of understanding (theMOU) with Mahindra and Mahindra Ltd. to bring the SMART Seedertechnology to India and to collaborate on other related opportunitiesto benefit each other's business interests.
Part of the Mahindra Group, Mahindra's farm equipmentsector (FES) is the world's largest tractor company by volume and ownsIndia's two largest selling tractor brands. With a presence in over 50countries, Mahindra FES has technology centers in Japan, Turkey,Finland and India, with a wide range of tractors and a growingpresence in farm machinery for crops across the value chain.
March 1, 2023: Clean Seed Hosts Special Event in Indiawith Regional Partners.
Clean Seed was proud to host a special event in Indiaalong with the company's partners Northern Farmers Producer CompanyLtd. Mega Farmer Cooperative (Northern Farmers Mega FPO), ChandigarhUniversity (CU) and Confederation of Indian Industry.
This energetic event welcomed the Hon. Scott Moe, thePremier of Saskatchewan, the Right Hon. Stephen Harper, former PrimeMinister of Canada, and the Honourable JP Dallal at Pehowa, Ministerof Agriculture, Haryana, to discuss the company's efforts to bring itsCanadian SMART Seeder technology and MINI-MAX™ to India to usher ina new era of sustainable farming in the region. After the successfulmeetings Clean Seed completed MINI-MAX™ corn planting demonstrationswith the company's partners, Northern Mega Farmers FPO, Mahindra, FESand CU.
Under the terms of the MOU with Mahindra, the companyis advancing toward the completion of the first of two Alphapreproduction MINI-MAX™ units. Mahindra is currently manufacturingthe frames and hoppers, while Clean Seed is finalizing the softwareadaptations and metering systems for the field-ready machines. TheseMINI-MAX™ units are expected to be completed in May, 2023, for thecompany's field planting programs.
Further to the news release dated Sept. 12, 2022, thecompany is also pleased to report that Northern Mega Farmers FPO haveconfirmed its initial order of 1,000 MINI-MAX™ machines withMahindra further laying the groundwork for the first production runfrom Mahindra in India.
Australia patent approval
The company has also received allowance for the grantof patent in Australia one of the company's key market goals for itsflow control technology and has submitted the necessary filings tohave the patent formally granted. Flow control is one of the coreinnovations in the company's on-demand air system for the SMART SeederMAX technology, dovetailing the innovations and processes between thecompany's staged air transfer system and its variable ratio meteringsystem.
This regional expansion to the flow control patentfamily further strengthens the company's variable rate metering patentfamily, which effectively extends the overall duration of protectionon the portfolio.
Private placement bridgefinancing
Clean Seed has finalized a non-brokered privateplacement of promissory notes for gross proceeds of $1,203,000 forworking capital purposes and to finance the company's objectives forthe spring under the MOU with Mahindra. The notes will mature 12months from the date of issue. The company may elect to satisfy theinterest payments due under the notes by the issuance of common sharessubject to acceptance of the TSX-V at each such instance. Inconnection with the notes, the company will issue an aggregate of1,415,293 bonus shares to the subscribers at a market price of 17cents per share. Clean Seed will also issue 376,470 shares to CormarkSecurities Inc. as a finder's fee for subscribers that Cormarkintroduced to the company.
Insiders of the company purchased a note in theprincipal amount of $203,000 in the offering. The company has reliedon the exemptions from the valuation and minority shareholder approvalrequirements of Multilateral Instrument 61-101 -- Protection ofMinority Security Holders in Special Transactions contained insections 5.5(b) and 5.7(1)(a) of MI 61-101 in respect of such insiderparticipation.
Any shares to be issued pursuant to the notes will besubject to a regulatory hold period of four months and a day inaccordance with the rules and policies of the TSX Venture Exchange andapplicable Canadian securities laws, and such other furtherrestrictions as may apply under foreign securities laws. Closing ofthe placement is subject to receipt of TSX-V approval.
Clean Seed restructures promissorynotes
The company has amended two promissory notesaggregating $1,410,500 of principal, whereby the lenders have agreedto defer the maturity date of the promissory notes from March 31, 2023, to Sept. 30, 2023. As consideration foramending the promissory notes, the company will extend the expiry dateof three million outstanding bonus warrants from March 31, 2023, toSept. 30, 2023. Each bonus warrant will entitle the holder to purchaseone common share of the company at a price of 20 cents per share untilSept. 30, 2023. The extension will be subject to approval of theTSX-V.
About Clean Seed Capital Group Ltd.
The common shares of Clean Seed Capital Group Ltd. arelisted on the TSX Venture Exchange and trade under the symbol"CSX”.
We are a team of innovators and business managementprofessionals with a proven track record of game changing innovationand production of patented agricultural technologies at an incrediblyhigh level. We pride ourselves as progress facilitators that turnsolutions for modern agricultural problem into commercially viableproducts to fulfill new demand.
Clean Seed’s SMART Seeder MAX™ technologies arerevolutionary seeding tools that utilize the unique synergy ofsophisticated electronic metering and intuitive software controlputting row-by-row variable rate technology at the forefront ofagricultural innovation. Our innovations create a new class ofhighly accurate seeding equipment designed specifically for today’sfarmer.
For further information please contact Clean Seed at604-566-9895 and visit our website at www.cleanseedcapital.com .
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this news release .
This press release is not an offer or a solicitation ofan offer of securities for sale in the United States. The commonshares of Clean Seed Capital Group Ltd. have not been and will not beregistered under the U.S. Securities Act of 1933, as amended, and maynot be offered or sold in the United States absent registration or anapplicable exemption from registration.
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