Cayman Islands-based fertilizer producer Itafos entered into a binding letter of intent with CL Fertilizers Holding LLC for a US$36 million capital raise.
CL Fertilizers agreed to subscribe for up to 38,076,923 Itafos shares at 52 Canadian cents apiece for US$15 million in gross proceeds, Itafos said Dec. 18.
The availability of a convertible unsecured and subordinated promissory note issued to CL Fertilizers will also be upsized by US$21 million. At closing, Itafos plans to borrow US$5 million, with the balance to be drawn at its discretion through Dec. 31, 2020.
Itafos will use the proceeds for general working capital and capital expenditure plans.
In November, Itafos halted operations at its Itafos Arraias phosphate facility in Brazil amid falling global fertilizer prices.