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
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
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
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:
Sustainable Energy Technologies Ltd.
Chairman & CEO
(403) 508-7177 # 111