NEW YORK, June 8, 2017 /PRNewswire/ -- Affiliates of Cartesian Capital Group, LLC (Cartesian) announced that they funded a capital increase of Intercontinental Potash Corp. (USA) ("ICP-USA"). Cartesian invested $287,500 in exchange for 567,014 common shares of ICP-USA, bringing Cartesian's total as-converted equity stake to 42.1%, including both preferred and common shares.
"We are pleased to provide continued support for ICP-USA and the Ochoa Project," noted Peter Yu, Managing Partner of Cartesian. "These limited amounts fund essential commercial functions and advance the Project."
On June 5, 2017, the board of directors of ICP-USA also approved an $800,000 debt offering, which is open pro rata to current shareholders of ICP-USA, including Intercontinental Potash Corp. ("ICP-Canada"). Under the terms of such offering, if it is fully subscribed by June 15, 2017, the proceeds will be used to redeem 1,577,778 common shares issued to Cartesian since April 28, 2017.
"We are surprised by the meritless suit filed by ICP-Canada against ICP-USA," Yu noted. "Despite having a cash balance of CAD$3.1 million at year-end 2016, and much advance notice, ICP-Canada declined, in writing, to subscribe to any of three modest and duly-authorized capital increases, each dedicated to providing the Ochoa Project with funds necessary to maintain and advance the Project. ICP-USA's debt offering, approved by the board on June 5, 2017, allows ICP-Canada a final opportunity to demonstrate its continued support of the Ochoa Project. It is perverse that, to date, ICP-Canada has chosen to use its scarce cash to sue its own subsidiary—incurring its own legal costs and effectively bearing a majority of ICP-USA's legal costs—when that capital could be used to preserve and create value at the Ochoa Project."
About Cartesian Capital Group
Cartesian Capital Group, LLC is a global private equity firm with proven expertise in assisting closely-held companies to expand internationally. Cartesian manages more than $2.4 billion in capital and has offices in New York, São Paulo, Shanghai, Warsaw, and Bermuda.
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SOURCE Cartesian Capital Group, LLC