Toronto, Ontario--(Newsfile Corp. - June 16, 2023) - SusGlobal Energy Corp. (OTCQB: SNRG) ("SusGlobal" or the "Company"), an environmental, agricultural and industrial biotechnology and renewables company, announces that OTC Markets Group Inc. ("OTC Markets") has requested the Company issue this statement about promotional activity concerning its common shares traded on the OTCQB Marketplace (operated by OTC Markets).
On June 12, 2023, OTC Markets informed the Company that it became aware of certain promotional activity concerning the Company and its common shares traded on the OTCQB Marketplace, including the distribution of a newsletter published by World Opportunity Investor discussing the Company, its business, and the fertilizer market generally.
On February 17, 2023, the Company entered into an advertising agreement with CDMG, Inc. (the "Service Provider"), whereby the Service Provider work order included an advertising ecosystem with a microsite landing page, paid social media services and due diligence for a Special Report. The Company was therefore aware of the Service Provider's activities respecting the Company since February 17, 2023. The Service Provider is a third-party marketing and advertising firm. The appointment of the Service Provider, as well as the compensation paid to the Service Provider were publicly disclosed and can be found in our latest Quarterly report filing dated May 15, 2023, under Item 2. Management's Discussion and Analysis of Financial Conditions and Results of Operations, on the Company's profile on EDGAR. An updated Service Provider list may be found on the Company's OTCQB Marketplace certification.
CDMG hired World Opportunity Investor to put out the newsletter. The Company provided the Service Provider with publicly available sources of information for its marketing materials and did not have editorial control over the content. The Company does not believe the statements in the marketing materials and newsletter emails were materially false or misleading and does not believe that the trading activity is attributed to the marketing materials. After inquiry of management, other than as disclosed herein, no directors, control persons, officers, or controlling shareholders have been involved with the creation, distribution, or payment of promotional materials related to the Company and its securities.
To management's knowledge, no directors, officers, controlling shareholders or third-party service providers have sold or purchased the Company's securities within the past 90 days except for 856,483 common shares acquired by an entity controlled by the Company's President and CEO, on April 18, 2023, as disclosed on the officer's Form 4 filed with the SEC on April 20, 2023.
As previously disclosed the Company issued promissory notes on October 29, 2021, March 3, 2022, and March 7, 2022 (the "Promissory Notes"). The October 29, 2021 promissory note was in the principal amount of $1,471,000 and the March 3, 2022 and March 7, 2022 promissory notes had a total principal amount of $2,400,000. The October 29, 2021 promissory note now has a principal amount of $1,300,000 (due to previous conversions into shares of Common Stock, see below). The March 3, 2022 and March 7, 2022 promissory notes now have a total principal amount of $3,168,000 and the interest that has accrued on such notes is equal to $424,946. The Company owes a total of $4,892,946 pursuant to the Promissory Notes. The Promissory Notes are past due.
The Company issued common stock and convertible securities convertible into common stock at prices constituting a discount to the current market rate at the time of issuance for the October 20, 2021, note as described below:
- On March 9, 2023, the Company converted $50,000 of a convertible note with principal balance of $1,450,000 prior to conversion and issued 346,813 common shares at a discount of 35% convertible into shares of the Company's common stock at a price of $0.1442 per share.
- On April 4, 2023, the Company converted $50,000 of a convertible note with principal balance of $1,400,000 prior to conversion and issued 375,052 common shares at a discount of 35%, convertible into shares of the Company's common stock at a price of $0.1333 per share.
- On May 16, 2023, the Company converted $50,000 of a convertible note with principal balance of $1,350,000 prior to conversion and issued 226,244 common shares at a discount of 35% convertible into shares of the Company's common stock at a price of $0.221 per share.
The Company believes that the recent developments with Environment and Climate Change Canada ("ECCC") regarding organic waste reduction and diversion away from landfills and processing it at composting or anaerobic digestion facilities avoiding the generation of landfill methane https://www.canada.ca/en/environment-climate-change/services/managing-reducing-waste/municipal-solid/waste-greenhouse-gases-canada-actions.html and the Company's ability to monetize Greenhouse Gas ("GHG") Offset Credits https://www.csaregistries.ca/GHG_VR_Listing/CleanProjectDetail?ProjectId=909
has generated interest in the Company's Ministry of the Environment, Conservation and Parks ("MECP") issued licensed facilities and infrastructure, resulting in an increase of investor interest and shareholder value.
The Company is committed to compliance with the OTC Markets' policy on stock promotion and the OTCQB standards. The Company encourages those interested in the Company to rely solely on information included in press releases issued and distributed by the Company through approved news wire or disclosure and news services, combined with its filings and disclosures made with the SEC, as well as information provided through the OTC Markets.
About SusGlobal Energy Corp.
SusGlobal Energy Corp., the developer of SusGro™, an award winning and revolutionary pathogen free organic liquid fertilizer, is an industrial, environmental and agricultural biotechnology company focused on acquiring, developing, and monetizing a portfolio of proprietary technologies in the waste to energy and regenerative product applications globally. It is management's objective to grow SusGlobal into a significant sustainable waste to energy and regenerative products provider and a trusted brand for the fertilizer, soil and aquaculture market, as LEADERS IN THE CIRCULAR ECONOMY®. For more information, please visit the Company's website at: www.susglobalenergy.com
Safe Harbor Statement
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's objectives. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, lack of sufficient financial resources; variations in market conditions, currency and our stock; the Company's ability to obtain any necessary permits, approvals, consents or authorizations required for its activities; the Company's ability to produce energy, biogas, compost or organic fertilizer from its properties successfully or profitably, to continue its projected growth, or to be fully able to implement its business strategies and other risk factors described in the Company's filings with the U.S. Securities and Exchange Commission, which may be viewed at www.sec.gov.
The securities have not and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or the securities laws of any state, and may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.
Contact
SusGlobal Energy Corp.
Marc Hazout, President and CEO
(416) 223-8500 or Toll Free: 1-866-512-7374
Email: info@susglobalenergy.com
SOURCE: SusGlobal Energy Corp.
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