Sustainable Energy Issues $1.78 Million 5-Year Royalty Debenture Units to Fund Growth of Energy Storage Business
(Marketwire (Canada) Via Acquire Media NewsEdge) CALGARY, ALBERTA--(Marketwired - Aug. 8, 2013) - Sustainable Energy Technologies Ltd (TSX VENTURE:STG) ("Sustainable Energy" or the "Company") announced today that it is issuing 89 Debenture Units ("Debenture Units") each comprised of one (1) $20,000 5-year secured royalty debenture ("Royalty Debenture") and, either 8,000 common shares in the capital of the Company ("Common Shares"), or, at the option of the investor, 16,000 common share purchase warrants ("Warrants") exercisable for a period of 4 years at $0.50 per share.
Subject to final approval of the TSX Venture Exchange, a total of 424,000 Common Shares and 576,000 Warrants will be issued under the private placement. The Company advised that management of the Company has subscribed for approximately 13% of the Debenture Units issued; and that it may issue additional Debenture Units on the same terms and conditions.
The Debenture Units are being issued at an origination discount of 12.5% to realize gross proceeds of $1,557,500, which, after payment of costs of the issue, will be used to reduce short term debt, and to provide working capital to execute on the Company's strategy to position its "bi-direx" energy storage inverter for global smart grid and micro-grid markets.
Michael Carten, Chairman and CEO of Sustainable Energy commented:
"We are on plan in Europe and Japan, and ahead of plan in the United States."
-- "In Europe, we are delivering on an exclusive contract with Prosol
Invest Deutschland GmbH ("Prosol") for its market leading
"Sonnenbatterie" (www.sonnenbatterie.de) residential energy management
system. Sonnenbatterie had an estimated 50% share of the German market
in 2012; and Prosol has stated that it expects to maintain a 40% share
of an estimated 2,000 megawatt market between now and 2017. (Per: IHS
Research June 2013)."
-- "Operationally, our supply chain is primed. We are able to meet forecast
European demand, with no new capital expenditures; and no working
capital is needed to ramp production.
-- "In Japan, we are on plan to replicate our European outcomes. We have
senior level engagement at several of the leading electronics firms in
the country that we believe will lead to one or more OEM supply
contracts within the next 6 - 9 months. Market feedback is that our
energy storage inverter offers material round trip efficiency advantages
and superior design flexibility over competitive solutions."
-- "In the US we are ahead of plan. Our announced plan has been to make our
energy storage inverters the electronics solution of choice for
suppliers of advanced battery technologies for micro-grid applications.
This is working. We are delivering on two contracts for military micro-
grids; and we have engagement with multiple manufacturers of next
generation batteries and integrators of micro-grids."
-- "We have unanticipated specific demand in the US to enable high
efficiency solar PV based back up power systems; and for high efficiency
distributed electric vehicle charging stations. Market feedback is that
bi-direx is the "premium" energy storage inverter in the US."
Each $20,000 Royalty Debenture bears interest at a rate of 3% per annum, plus an amount equal to 2/100 of 1% of the consolidated revenues realized by the Company, both payable quarterly in arrears. The Royalty Debentures are callable by the Company at par at any time after August 1, 2015; and if not called, will be amortized in 12 equal quarterly installments beginning August 1, 2015.
In connection with the issue, the Company is paying a total of $4,375 cash commissions and is issuing a total of 8,750 broker warrants (the Broker Warrants) entitling the holder to acquire one common share at a price of $0.50 per share for a period of one year from the date of issue.
The Debentures, Common Shares, Warrants and Common Shares issuable upon exercise of the Warrants are all subject to a 4 month hold period which expires on December 8, 2013.
About Sustainable Energy:
Sustainable Energy (www.SustainableEnergy.com) designs and manufactures advanced power electronics for distributed smart grid and micro-grid applications. Advanced power electronics are the critical interface between all distributed generation and storage systems devices, ensuring the delivery of high quality AC power to the grid, as well as providing utility control over the interconnection and power quality.
Sustainable Energy's bi-directional low voltage energy storage inverter directly connects low voltage batteries to the grid with the power industry's highest round trip (battery charging and discharging) efficiencies. The inverter meets tough utility smart grid standards such as Germany's VDE 4105 which is becoming a global standard and enables full utility control over the battery dispatch and power quality functions.
Sustainable Energy's platform is based on patented breakthroughs in power inverter design that enable its platform to convert high current/low voltage DC into high quality AC with conversion efficiencies that are materially higher than anything in the market with an inherently lower cost structure.
Forward Looking Information
The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, it includes: statements concerning the potential size of the market for residential energy storage in Germany; statements concerning the Sonnenbatterie target share of the German market; statements concerning market response to bi-direx; statements concerning the performance of bi-direx and statements concerning the performance of bi-direx in combination with batteries. While management believes these statements to be accurate they are dependent on a wide range of factors beyond management's control and should not be viewed as a guarantee of the specific outcome. Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties.
Many factors could cause the Companies' actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Companies do not undertake any obligation to release publicly any revisions to forward- looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
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 or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Chief Executive Officer
Source: Sustainable Energy Technologies Ltd.
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