Pan American Fertilizer (TSX-V:PFE
), a Vancouver-based firm currently positioning itself to be recognized as the largest calcium sulphate mineral producer in the South Cone, announced today what the company intended to do with its recently announced $0.5 million private placement offering.
According to the news release
, the company was going to utilizes funds from the transaction to expand its current fertilizer gypsum base business in Argentina and Paraguay while commencing its expansion into Uruguay.
This effort is expected to allow the company to become a fully integrated fertilizer company geared toward the South American market with business activities including the development of specialty fertilizers for various growers in the medical marijuana sector.
Company Chairman and CEO, Randy Wright, commented the company’s decision, “These new funds will now allow Pan American to better define the opportunity to be the preferred supplier of specialty fertilizers specifically tailored for various cultivators of medical marijuana.”
Pan American is also bringing AgriConsultant, Nicholas Konkin, on board to advise the company in regards to potential Canadian and Uruguay-based partners already producing medical marijuana.
The company also wanted to ensure investors that it was not entering into medical marijuana production and therefore will not be affected by any decision handed down by governmental bodies regarding the MMPR licenses due to be granted to approved growers.
Pan American was in the news recently when the company continues getting listed in Stockhouse’s daily medical marijuana investment roundup
Shares dipped 8.00% on the news to $0.115 per share.
Currently there are 34.2m outstanding shares with a market cap of $3.9 million.