February 20 (Renewables Now) - Greenlane Renewables Inc (CVE:GRN), a Canada-based producer of biogas upgrading systems, on Wednesday said it has raised CAD 11.5 million (USD 8.67m/EUR 8.04m) in gross proceeds from a share issue.
The company issued 23 million units priced at CAD 0.50 each. Every unit consists of one common share and one-half of one common share purchase warrant. A full warrant enables the holder to buy one additional common share in Greenlane at a price of CAD 0.70 apiece until February 19, 2021.
The underwriters also have an option to buy 1.38 million shares at the issue price for a year after closing.
The net proceeds from the issue will be used for the company's biogas upgrader projects, a payment to Pressure Technologies plc (LON:PRES) against an outstanding promissory note as well as for general corporate purposes and working capital.
Pressure Technologies sold its wholly-owned biogas subsidiary to Creation Capital Corp in June 2019, which was then renamed to Greenlane Renewables.
Greenlane's systems produce renewable natural gas from organic waste sources including landfills, wastewater treatment plants, dairy farms and food waste, which can be either injected into the natural gas grid or used directly as vehicle fuel.
(CAD 1.0 = USD 0.754/EUR 0.699)