TORONTO, ONTARIO--(Marketwired - March 27, 2014) - Biosenta Inc. ("Biosenta" or the "Company") listed on the CNSX (CSE:ZRO) is pleased to announce that it has completed a multi-level financing agreement with Bassett Financial Corporation ("BFC"), based in Toronto.
The Terms of the Agreement include:
- A six-month, $550,000 Bridge Loan used to fund additional sales and marketing activities in Canada and to fund shooting of an infomercial for US markets;
- An initial $200,000 Factoring line-of-credit based on receivables from sales to large Canadian and US retail chains, with an intention to increase the facility as required;
- An agreement to fund $1 million or more of common equity upon certain Canadian sales, and the receipt of approval for sale in the US from the Environmental Protection Agency ("EPA"), expected within the next 5 months;
- An agreement to fund $2 million or more of common equity upon additional US sales targets being achieved, expected before the end of 2014;
- A Corporate Finance Advisory Agreement whereby BFC will assist the company in restructuring its balance sheet, work with Biosenta to revise the business plan toward achieving high growth sales in Canada and the US; and to provide multi-faceted assistance in leveraging the public listing potential of the company by directing activities more toward future institutional investors;
- Nomination of BFC CEO, Matthew Bassett to the Board of Directors of Biosenta.
Biosenta has been actively engaged in bringing its first retail product, ZeroMold™, to retail markets in Canada and the US. ZeroMold™ is the first product worldwide known to the Company that effectively kills mold, bacteria and fungi on contact and prevents re-growth. ZeroMold™ has been approved by Health Canada for sale in any jurisdiction in Canada.
Working with BFC, Biosenta has established an aggressive schedule of Milestones it expects to achieve in the next year that includes:
- June 30 - Securing its first national retail distribution contract in Canada
- July 31 - Securing a second national retail contract in addition to other individual distribution contracts
- September 30 - Securing approval from the EPA to sell ZeroMold™ throughout the United States
- October 31 - Launching an infomercial in selected regions in the US
- November 30 - Launching sales through television network QVC in the US
- December 31 - Securing its first US national retail distribution contract
"We believe that the relationship we have formed with BFC gives us the solid foundation we have been seeking to help Biosenta grow to in excess of a $100+ million per year sales organization within the next few years," said Biosenta CEO Chris Bilz. "By solidifying our balance sheet and by taking better advantage of our publicly listed status to attract institutional investors, we will have the financial tools required to let our marketing and sales team get the job done. ZeroMold™ is an incredible product that meets the needs of millions of people in North America to eradicate their household mold or other microbial contamination issues," he said.
"Biosenta has an excellent array of Mold Eradication products for both the consumer and industrial markets that we believe can enjoy huge success in North America," said BFC CEO Matthew Bassett. "We believe that through our new partnership with Biosenta, they will be very well positioned to exploit these markets with a renewed focus, and properly funded attack."
About Biosenta Inc.
Biosenta is the first company globally, to our knowledge, which has products that can completely eradicate mold, bacteria and fungi on contact and prevent re-growth. Other primarily bleach based products can eliminate surface issues and odours but will not kill the spores that continue to cause the growth of the microbial substances. The Biosenta products address the demand created by the mounting health and environmental concerns that mold and other microbes can affect the immune system, nervous system, liver, kidneys, blood and cause brain damage. ZeroMold™ is the first product made available for sale at the retail level and other, larger scale products, are also being developed for the Industrial, Commercial, and Institutional ("ICI") markets on a global basis.
About Bassett Financial Corporation
BFC is a privately owned firm concentrating on providing a wide range of Merchant Bank services including fully secured Bridge Loans, Factoring of Receivables and Purchase Order Financing.
BFC is also focused on providing Corporate Finance services ranging from corporate restructuring, strategic planning aimed at development and execution of high growth sales strategies, assistance with new public listings and management of existing public listings. A wide range of public market and investor relations activities will be offered which are aimed at raising a company's profile and increasing their desirability to investors.