- Sale will pay down debt and interest on debentures over next
15 months
TORONTO, Aug. 12, 2016 /CNW/ - Enerdynamic Hybrid
Technologies Corp. ("EHT" or the "Company")
(TSX-V: EHT) is pleased to announce that on August 9, 2016, its wholly-owned subsidiary,
Enerdynamic Hybrid Technologies Inc. ("EHTI"), has entered
into a purchase agreement (the "Purchase Agreement")
with an arm's length third party purchaser (the
"Purchaser"), pursuant to which, among other things, EHTI
has agreed to sell to the Purchaser, and the Purchaser has agreed
to acquire from EHTI, its ownership interest (the
"Acquisition") in Reliant First Nation Limited Partnership
("RFNLP"), which owns (i) certain FIT version 3.0.1
contracts and FIT version 3.1 contracts with a total estimated
installed nameplate capacity of 40.506 MW DC (33.755 MW AC of
contract capacity) to be located on the school roofs of the Peel
District School Board (the "Peel Projects") and (ii) certain
FIT version 3.0.1 contracts with a total estimated installed
nameplate capacity of 5.672 MW DC (4.727 MW AC of contract
capacity) to be located on the school roofs of the Greater Essex
County School Board (the "Essex Projects"). The Essex
Projects have been acquired by a different third party and do not
form part of the Acquisition. EHTI will receive cash consideration
on a per watt basis of constructed Peel Projects.
John Gamble, President and CEO of
EHT, said "we've always felt that this was an attractive asset, but
it is capital intensive and now does not fit with the new
opportunities that we have in front of us. This transaction will
release the funds that we have invested in this asset and, at the
same time, remove a significant capital requirement going
forward."
In accordance with the Purchase Agreement, EHTI will receive
approximately $7,061,400 from the
Purchaser, subject to adjustments to the purchase price based on
the commercial terms of the transaction. In Addition, the Purchaser
will pay EHTI for certain of the development fees and other costs
paid by EHTI to RFNLP in connection with the development of the
Peel Projects.
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. Through its recent
acquisitions and new product developments, the organization now
supplies advanced material solutions for various industries in
combination with energy saving and energy generation solutions.
EHT's core expertise lies in the development of innovative
composite material systems with a full integration of smart energy
solutions, which are processed through the use of EHT's proprietary
production technologies into attractive applications- primarily
modular homes, cold storage facilities, schools, hotels and
residential and commercial buildings.
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 the Acquisition, the delivery of all approvals from
applicable regulatory bodies, the development and build of the Peel
Projects and all costs incurred in connection therewith.
Forward-looking information in this news release includes
statements regarding, among other things, the completion of the
Acquisition. Although EHT believes that the assumptions used in
preparing the forward-looking information in this news release are
reasonable, including that all necessary regulatory approvals will
be obtained in a timely manner, 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.