07:39 AM EDT, 09/12/2025 (MT Newswires) -- TeraGo ( TRAGF ) overnight Thursday said it agreed to recapitalize its business and raise new capital.

The company entered into a 36-month $21 million term loan with EdgePoint Investment Group at a 15% annual interest rate to refinance its term debt facility. TeraGo ( TRAGF ) will also issue EdgePoint 2 million warrants valid for five years.

It plans to raise $12 million through a rights offering and a private placement that includes a $4 million standby commitment from Cymbria. TeraGo ( TRAGF ) will issue up to 20 million shares at $0.84 each, which could generate $16.8 million if fully exercised.

The offering is expected to close Oct. 15 and already has $5.2 million in commitments. The company also intends to raise up to $5.5 million in a private placement.

Proceeds will repay a US$21 million loan that has been extended to Oct. 31, 2025, to allow time to close the new debt facility.

TeraGo ( TRAGF ) shares closed Thursday up $0.01 at $1.06 on the Toronto Stock Exchange.