TORONTO, May 17, 2019 /CNW/ - EnerDynamic Hybrid
Technologies Corp. ("EHT" or the "Company")
(TSX-V: EHT) announces that it has undertaken negotiations
with certain creditors of the Company to settle up to $2.5 million of certain existing debt in exchange
for the issuance of up to 50,000,000 units of the Company
("Units") at a deemed price of $0.05 per Unit (the "Securities for Debt
Transactions").
Each Unit consists of 1 common share in the capital of the
Company (each a "Common Share") and 1 share purchase warrant
of the Company (each a "Warrant"). Each Warrant entitles the
holder thereof to acquire 1 Common Share at a price of $0.075 per Common Share at any time prior to
5:00 p.m. (Eastern Standard Time) on
the date that is 36 months following the date of issuance, provided
that in the event that, during the period following 4 months and a
day after the date of issuance, the trading price of the Common
Shares exceeds $0.15 per Common Share
for 10 consecutive trading days, the Company may accelerate the
expiry date of the Warrants to the date that is 30 calendar days
after the date on which the Company issues notice to all holders of
Warrants of the new accelerated expiry date.
The Company's decision to negotiate the Securities for Debt
Transactions is intended to preserve its existing cash
balances.
All securities issuable in connection with the Securities for
Debt Transactions will be subject to statutory hold periods of 4
months and 1 day from the date of issuance in accordance with
applicable securities law legislation. The Securities for Debt
Transactions remain subject to the approval of the TSX Venture
Exchange.
The Company is also pleased to announce that it has completed a
non-brokered private placement of $400,000.00 that was conditionally accepted by
the TSX Venture Exchange on May 2,
2019. The private placement, which closed on May 17, 2019, is comprised of 8,000,000 units at
a price of $0.05 per unit. Each
unit consists of one common share and one common share purchase
warrant, with each whole warrant being exercisable for one common
share of the Company at a price of $0.07 per share for a term of 36 months (the
"Offering"). No finder's fee was paid in connection with this
placement.
Proceeds from the private placements will be used for general
working capital purposes.
Pursuant to applicable securities laws, all securities issued
under the Offering are subject to a four month and a day hold
period from the date of issuance.
This news release does not constitute an offer to sell, or a
solicitation of an offer to buy, any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within
the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
About ENERTEC
The EHT advanced ENERTEC Modular Wall and Roof System uses a
proprietary skin and foam core that is stronger and more energy
efficient than traditional wood or steel structures providing the
highest ratings for energy efficiency. EHT works with its
partners worldwide to erect the buildings on-site utilizing EHT
staff and local crews. After installation, each structure can
be furnished and finished to meet the customer's requirements
including siding, tile, kitchens and bathrooms or segregated
commercial rooms. The finished wall product can be shipped on
pallets and delivered via rail, truck or water in standard
formats.
At the core of the ENERTEC product line is the ENERTEC Embedded
Solar Roof Module. Solar cells can be embedded in a proprietary
fire proof skin resulting in substantial cost savings by
eliminating heavy glass panels and aluminum racking required for
traditional solar panels. Two barriers to greater adoption of solar
energy are weight limitations of the roof on which solar panels
could be deployed and onerous shipping and labour costs. A lighter
product at a better price point will open a larger market for solar
due to the faster return of capital investment especially for rural
and remote users looking to go off-grid. Furthermore, the entire
EHT embedded solar roof becomes a massive solar panel capable of
producing significantly more energy than the home requires,
allowing the structure to then become an important source of power
for the local micro grid or large battery storage systems.
About EnerDynamic Hybrid Technologies
EHT delivers proprietary, turn-key energy solutions which are
intelligent, bankable and sustainable. Most energy products and
solutions can be implemented immediately wherever they are needed.
EHT stands above its competitors by combining a full suite of solar
PV, wind and battery storage solutions, which can deliver energy 24
hours per day in both small-scale and large-scale format. In
addition to traditional support to established electrical networks,
EHT excels where no electrical grid exists. The organization
supplies advanced solutions for various industries in combination
with energy saving and energy generation solutions. EHT's expertise
includes the development of module structures with full integration
of smart energy solutions. These are processed through EHT's
production technologies into attractive applications: modular
homes, cold storage facilities, schools, residential and commercial
out buildings and emergency/temporary shelters.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
The statements herein that are not historical facts are
forward‐looking statements. Forward-looking
information involves risk, uncertainties and other factors that
could cause actual events, results, performance, prospects, and
opportunities to differ materially from those expressed or implied
by such forward-looking information, including risks related to the
completion of all approvals from applicable regulatory authorities
and the completion and execution of final debt settlement
agreements in respect of the Shares for Debt Transactions. Although
EHT believes that the assumptions used in preparing the
forward-looking information in this news release are reasonable,
undue reliance should not be placed on such information, which only
applies as of the date of this news release, and no assurance can
be given that such events will occur in the disclosed time frames
or at all. EHT disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
applicable securities laws.
SOURCE Enerdynamic Hybrid Technologies Corp.