Urban Barns Foods (OTCBB:URBF), announced today that it has completed a private placement with investors to sell 250,000 units for $0.80 per unit. This results in a gross capital raise of US$200,000, with no material related expenses. Each unit consists of one common share in the company and one non-transferrable warrant to purchase one common share. Each warrant allows the holder to purchase one share at $1.08 for the 12-month period immediately following the closing, and at $1.20 for the subsequent 12-month period. The warrants expire 24 months after the closing.
Dan Meikleham, Chairman of Urban Barns, stated that “we haven’t yet put anyone on the payroll so the additional capital is going to be primarily used for accounting and legal fees related to quarterly reporting and registration of sufficient stock related to raising five million dollars working capital.”
“At the end of our first reporting period since the acquisition of Urban Barns, effective 31 January 2010, Urban Barns is completely deleveraged.” continued Mr. Meikleham, Chairman & CFO of Urban Barns, adding, “The company has no outstanding debts to pay, and we plan to use these funds to complete the capital raise of sufficient working capital to establish planned operations in Vancouver, Canada, and in Puerto Rico by the end of the third fiscal quarter this year.”
The securities issued and sold in the private placement will not be registered under the Securities Act of 1933 as amended (the “Act”), and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act.About Urban Barns Foods Inc.: Urban Barns Foods uses proprietary equipment to produce affordable fruits and vegetables in a secure and controlled indoor environment. By setting up subsidiary facilities and growing locally, Urban Barns Foods can focus on supplying any community, irrespective of the regional climate, effectively reducing shipping times and related spoilage costs. Urban Barns Foods has the unique ability to scale and cater to the demands of all major communities. Our commitment to our consumers is reflected through our motto, “Purely Fresh, Naturally Tasty, Completely Healthy.”