STT Enviro Corp. Announces Significant Improvement in Its Balance
Sheet
TORONTO, ONTARIO--(Marketwired - Apr 1, 2014) - STT Enviro Corp.
("STT" or the "Company") (TSX-VENTURE:STT) is pleased to announce
the positive results from the maturity on April 1, 2014 of $2.3
million in convertible debentures (the "Debentures") which resulted
in new equity for the Company of $1.2 million. The conversion of
some of the Debentures and subsequent exercise of warrants will
result in the issue of 8,808,210 common shares today. This means
the Company was able to reduce its debt, net of an anticipated
additional draw of an existing loan facility to assist with the
retirement of the remaining debentures, from approximately $3.9
million to $2.8 million.
David Deacon, Chief Executive Officer, commented, "I am happy to
announce that as of April 1st, 2014 we removed the potential
overhang of 26.7 million shares from the Company. A manageable
8,808,210 shares are being issued today. Following their issue, the
gross number of issued common shares will be 35,337,154."
He continued, "Removing the cloud of potential dilution means
that we are now able to move forward with a clear understanding of
the Company's outstanding share balance and investors will now be
able to come to a valuation based on our results over the past
couple of years:
- Annual revenue up 115% since 2010 to $28.4 million in
2013;
- Increased EBITDA to $2.6 million in 2013, up from a negative
$1.5 million in 2010;
- Expected 53% reduction of term debt from $6.0 million at March
31, 2011 to $2.8 million by the end of April 2014;
- Launch of STT Solutions, a high margin new aftermarket and
service business; and
- Expansion of STT Tanks, almost doubling year-over-year 2011
sales."
The Company has received instructions from the holders of the
final $169,722 of Debentures maturing April 25, 2014 which would
result in a further 853,369 shares being issued, representing
$119,472 of new equity, for a total of 9,661,579 new common shares
and $1,352,621 of new equity. Please see the chart below for full
details.
After April 25, 2014 the total expected number of common shares
issued by the Company is 36,190,523.
Summary of the Convertible Debenture Maturity:
|
|
# of Shares |
Per Share |
|
|
|
|
|
|
| Total amount matured April 1, 2014 |
$ |
2,328,120.00 |
|
|
|
| Amount held by STT through subsidiary retired at
maturity |
$ |
937,520.00 |
|
|
|
| Net amount outstanding |
$ |
1,390,600.00 |
|
|
|
|
|
|
|
|
|
| Amount converted to common shares |
$ |
874,766.34 |
6,248,331 |
$ |
0.14 |
| Amount retained at investor's request and used to
exercise warrants |
$ |
233,333.24 |
1,666,666 |
$ |
0.14 |
| Amount repaid |
$ |
282,500.42 |
|
|
|
|
$ |
1,390,600.00 |
7,914,997 |
|
|
|
|
|
|
|
|
| Other warrants exercised |
$ |
125,049.82 |
893,213 |
$ |
0.14 |
|
|
|
|
|
|
| Summary: |
|
|
|
|
|
|
Amount converted from debt to common shares |
$ |
874,766.34 |
6,248,331 |
|
|
|
Proceeds from exercise of warrants |
$ |
358,383.06 |
2,559,879 |
|
|
| Total increase in shareholders' equity |
$ |
1,233,149.40 |
8,808,210 |
|
|
|
|
|
|
|
|
| Expected
Result for Final Tranche Maturing April 25, 2014: |
|
|
|
|
|
|
|
|
|
|
|
| Total amount maturing April 25, 2014 |
$ |
169,722.00 |
|
|
|
| Amount expected to be repaid |
$ |
66,500.28 |
|
|
|
| Amount expected to convert from debt to common
shares |
$ |
103,221.72 |
737,298 |
|
|
| Proceeds expected from exercise of warrants |
$ |
16,249.94 |
116,071 |
|
|
| Total expected increase in shareholders' equity |
$ |
119,471.66 |
853,369 |
|
|
|
|
|
|
|
|
| Total for Both
Tranches |
|
|
|
|
|
| Increase in shareholders' equity |
$ |
1,352,621.06 |
|
|
|
| New common shares issued |
|
|
9,661,579 |
|
|
The Debentures were issued by the Company as part of the private
placement financing announced on April 15th, 2011 (click here to
view press release).
About STT Enviro Corp.
STT Enviro Corp. (TSX-VENTURE:STT) is an international supplier
of industrial processes and environmental solutions. We work with
the biggest and most respected names in the mining, oil & gas
and utility sectors by assisting them in reducing their
environmental footprint and improving their operational
efficiency.
Our three primary areas of business are in providing
engineering, project management and installation of bulk
material/chemical handling systems for the neutralization of
pollutants; supplying bolted steel tanks and glass fused to steel
tanks for liquid storage projects; and sales of parts and
aftermarket services to our customers to help them in maintaining
their systems and increasing overall efficiency.
The Company is focused on becoming a leading supplier of
environmental solutions by continuing to grow its business
organically and, longer term, to make strategic acquisitions at
prices that are financially accretive.
For more information, please visit our website at
www.sttenvirocorp.com.
Caution Regarding Forward-Looking Information and Non-IFRS
Measures
Forward-Looking Information
This news release contains certain forward-looking statements.
These statements relate to future events or future performance and
reflect management's current expectations and assumptions regarding
the growth, results of operations, performance, and business
prospects and opportunities. Such forward-looking statements
reflect management's current beliefs and expectations and are based
on information currently available to management of the Company. In
particular, statements regarding the future operating results and
economic performance are forward-looking statements.
Forward-looking statements involve significant risks and
uncertainties. A number of factors could cause actual events or
results to differ materially from the events and results discussed
in the forward- looking statements, including risks outlined under
"Risk Factors" in our Annual Information Form, which is posted at
www.sedar.com. In evaluating these statements, investors should
specifically consider various factors, including such risks as
Investment Risk; Business Valuations; Condition of Capital Markets;
Dependence on Key Personnel; General Economic Factors; Interest
Rate Risk; Competition; and Reliance on Key Suppliers. One or more
of these "Risk Factors" could cause actual events or results to
differ materially from any forward-looking statement. These factors
should not be considered exhaustive. Although the forward-looking
statements contained in this press release are based on what
management of the Company considers to be reasonable assumptions
based on information currently available to them, there can be no
assurance that actual events or results will be consistent with
these forward -looking statements, and management's assumptions may
prove to be incorrect. These forward-looking statements are made as
of the date of this press release, and none of STT nor its
directors assume any obligation to update or revise them to reflect
new events or circumstances. Undue reliance should not be placed on
forward-looking statements.
Non-IFRS Measures
The term "EBITDA" is a financial measure used in this document
which is not a standard measure under International Financial
Reporting Standards ("IFRS"). The Company's method of calculating
EBITDA may differ from the methods used by other issuers.
Therefore, STT's measure of EBITDA, as presented in this press
release, may not be comparable to similar measures presented by
other issuers. EBITDA refers to net earnings determined in
accordance with IFRS before depreciation, amortization of
intangible assets, gain or loss on disposal of property and
equipment, interest expense, accretion expense, special charges and
recoveries, stock compensation expense and income tax expense.
Management believes that EBITDA is a useful supplemental measure of
cash available for debt service, working capital, capital
expenditures, income taxes, and distribution. Investors are
cautioned that EBITDA, as a non -IFRS measure, is not an
alternative to measures under IFRS and should not, on its own, be
construed as an indicator of performance or cash flows, a measure
of liquidity or as a measure of actual return.
The term "backlog" is a financial measure used in this document
which is not a standard measure under IFRS. The Company's method of
calculating backlog may differ from the methods used by other
issuers. Therefore, STT's measure of backlog, as presented in this
press release, may not be comparable to similar measures presented
by other issuers. Backlog is the value of revenue remaining to be
earned from purchase orders received from customers. The projects
represented in backlog are executed according to a schedule agreed
with each customer, which could range in duration from one month to
eighteen months. Revenues are earned on a percentage of completion
basis. Management uses this measure to i) monitor the Company's
success in securing new orders, and ii) gauge the likelihood of
meeting revenue objectives in future periods.
Investors are cautioned that backlog, as a non-IFRS measure, is
not an alternative to measures under IFRS and should not, on its
own, be construed as an indicator of performance or cash flows, a
measure of liquidity or as a measure of actual return.
Neither the 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 of this
release.
Investor Relations: STT Enviro Corp.Holly HendershotDirector of
Corporate Affairs+1
905-875-5584hhendershot@sttenvirocorp.comwww.sttenvirocorp.com
STT Enviro Corp. (TSXV:STT)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
STT Enviro Corp. (TSXV:STT)
Historical Stock Chart
Von Jun 2023 bis Jun 2024
