Toronto, Ontario--(Newsfile Corp. - November 6, 2017) - EnerDynamic Hybrid Technologies Corp. (TSXV: EHT) ("EHT" or the "Company") announces that it has negotiated with its 18% debenture holders and certain other creditors of the Company to settle up to $7.5 million dollars of debenture interest and principal obligations by converting it, on an individual debenture basis, in exchange for the issuance of up to 75,000,000 units of the Company (“Units”) at a deemed price of $0.10 per Unit (the “Securities for Debt Transactions”).
The Securities for Debt Transactions, which form part of the agreement to extend the maturity date of the subject debentures to July 2018, as previously announced in the Company’s news release dated October 4, 2017, will result in considerable benefit to EHT by preserving its existing cash balances and enhancing its working capital position.
John Gamble, EHT’s CEO, commented that, “the working capital benefit in the short and medium term is expected to empower the Company to execute on its revenue strategies. If exercised, the warrant component of this program would inject up to $11,200,000 in new working capital. When combined with the near-term settlement of the Reliant sale transaction, representing more than $6,000,000 in further debt elimination, the balance sheet of EHT will improve substantially.”
Each Unit consists of 1 EHT common share (a “Share”) and 1 EHT common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to acquire one Share at a price of $0.15 at any time up to 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 Shares exceeds $0.30 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.
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.
About EnerDynamic Hybrid Technologies
EHT delivers proprietary, turn-key energy solutions which are intelligent, bankable and sustainable. EHT’s expertise includes the development of its ENERTEC module structures with full integration of smart energy solutions. Using a proprietary skin and foam core that is stronger than traditional wood or steel structural insulated panels, EHT provides exceptional thermal energy efficiency in modular homes, cold storage facilities, residential/commercial out buildings and emergency/temporary shelters. EHT works with its partners worldwide to erect the buildings on-site utilizing EHT staff and local crews. In addition to traditional support to established electrical networks, ENERTEC buildings excel where no electrical grid exists.
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.
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.
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