Doughty Hanson Commits Up To $3 Million in Equity for Sustainable Energy

Highlights:

  • Doughty Hanson commits to purchase up to $3 Million in Convertible First Preferred Shares
  • Funding to support financing of production of inverters to meet growing order book
  • Doughty Hanson to acquire initial 50,000 First Preferred Shares convertible at $0.155 per share for total proceeds of $500,000

CALGARY, Aug. 23 /CNW Telbec/ - Sustainable Energy Technologies Ltd (TSX V:"STG") ("Sustainable Energy" or the "Company") a manufacturer of next generation solar inverters announced today that, subject to regulatory approval, Doughty Hanson Technology Ventures ("Doughty Hanson") has committed to provide up to $3 million in new equity to the Company over the next 6 months to meet working capital needs as they arise.

The equity will be provided by the purchase of First Preferred Shares ("Series 9 Shares"), which are redeemable at any time at the option of the Company, will be convertible into Common Shares of Sustainable Energy at a price that is equal to the weighted market price determined over a pricing period of five trading days preceding notice of each drawdown by the Company. The Series 9 Shares are similar to, and rank pari passu with First Preferred Shares Series 7 ("Series 7 Shares").

"Sustainable Energy's core value propositions, based on company's proprietary low voltage inverter technology, are stronger than ever," said George Powlick, Managing Director of Doughty Hanson. "Our equity commitment will support the company as it resolves existing supply constraints and positions itself to meet growing demand."

The Equity Commitment is intended to provide short term working capital and the equity support needed by the Company to secure operating lines to increase production of its SUNERGY inverters to meet a growing order book. The Equity Commitment is irrevocable as to the first $1.5 million with the balance subject to Doughty Hanson being satisfied on certain financial and performance benchmarks.

As compensation for underwriting the Equity Commitment, Doughty Hanson will receive a $45,000 arrangement fee and 5,161,290 Warrants to acquire Common Shares of the Corporation exercisable at $0.155 per share for a period of one year from the date of Closing of the Agreement. The Warrants have a cashless exercise feature which permits their exercise on surrender of the Warrants, and the number of Common Shares issued will be based on the intrinsic value of the Warrants at the time of exercise.

On the occasion of each draw down under the Equity Commitment, the Corporation will offer holders of Series 7 Shares the opportunity to purchase the same number of Series 9 Shares, less one (1) share. The proceeds of issue of additional Series 9 Shares issued to other Series 7 shareholders will reduce the amount committed by Doughty Hanson.

The Company will draw down 50,000 Series 9 Shares on Closing for gross proceeds of $500,000 and will offer holders of Series 7 Shares the right to purchase up to 49,999 Series 9 Shares exercisable for a period of 10 days from Closing. The conversion price of subsequent draw downs under the Equity Commitment will be priced in the context of the market at the time of the draw down. Prior to this transaction, Doughty Hanson held a net 23.1% interest in the fully diluted common share capital of Sustainable Energy.

About Doughty Hanson: Doughty Hanson (www.doughtyhanson.com) is one of Europe's most successful independent private equity firms. Since 1985, Doughty Hanson has undertaken more than 118 investments with an aggregate acquisition value in excess of (euro)28 billion. Doughty Hanson employs over 50 investment professionals of 15 nationalities, located in offices in London, San Francisco, Frankfurt, Madrid, Milan, Munich, Paris and Stockholm.

About Sustainable Energy: Sustainable Energy (www.sustainableenergy.com) designs, manufactures and distributes power inverters for grid-connected solar PV systems under the SUNERGYTM trademark. Advanced power inverters are a critical enabler of all modern solar PV power systems converting the direct current ("DC") power output of the solar PV modules into the high quality alternating current ("AC") power required by the power grid. Advanced power inverters also optimize the performance of the solar PV modules and maintain the integrity and safety of the interconnection with the power grid.

The SUNERGY inverter is the only inverter platform manufactured today, which enables the game-changing parallel system architecture with industry leading efficiencies and with an industry standard cost and form factor. Its PARALEXTM (www.paralexsolar.com) system architecture enables each solar module to operate independently of any other module in the system delivering 5-15% increased energy yield, without the expensive hardware and continuing maintenance cost of micro-inverter products. Every module delivers its maximum power potential while eliminating the string inverter impact of shading, soiling and other real world factors.

The extra low operating voltage of the SUNERGY platform enables a system architecture that is inherently safe and that can be installed and maintained by most building trades without the need for custom design, significantly reducing the installed system cost and increasing investor yields.

Sustainable Energy's technologies are the subject of multiple patents issued by and pending with the US Patent and Canadian Patent Offices.

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, we include: statements concerning the demand for our products and the value of our technology and products for solar PV systems. Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. In particular there is no assurance that performance of the systems will be as estimated or that market demand in Ontario will materialize

Many factors could cause the Company's 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. Readers are also directed to the Risk Factors section of the Company's current Annual Information Form which may be found on its website or at www.sedar.com The Company does 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.

SOURCE SUSTAINABLE ENERGY TECHNOLOGIES LTD

For further information: For further information:

Michael Carten
Sustainable Energy Technologies Ltd.
Chairman & CEO
(403) 508-7177 # 111
Michael.carten@sustainableenergy.com

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SUSTAINABLE ENERGY TECHNOLOGIES LTD

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