EHT Completes $3,000,000 Private Placement of 6.5% Convertible Debentures

TORONTO, March 5, 2015 /CNW/ - Enerdynamic Hybrid Technologies Corp. (TSX-V: EHT) ("EHT" or the "Company") is pleased to announce that it has completed a brokered private placement of 6.5% secured convertible debentures (the "Debentures") in the aggregate principal amount of $3,000,000 at an issue price of $1,000 per Debenture (the "Offering").  The net proceeds of the Offering will be applied by the Company towards the completion of the acquisition of 40 Megawatts of Feed in Tariff ("FIT") issued by the Ontario Government under the FIT 3.0 program.

As previously reported on February 11, 2015, EHT will begin construction on more than 143 commercial rooftop solar energy installations in Ontario, Canada.

The first solar energy installation will be built on the Hazel McCallion Public School in the region of Peel. Construction of the solar energy installation will begin in March, 2015. The remaining solar energy installations will be built, on various school rooftops in the Peel District School Board portfolio, and will collectively span more than 5.5 million square feet in size.

The entire solar energy installation portfolio will be built and connected into the Ontario electricity grid backed by executed 20 year Power Purchase Agreements with the Ontario Government. The Power Purchase Agreements were awarded under the FIT 3.0 Program and provide for an expected rate of 32.9 cents per Kilowatt hour generated. In total the solar energy installations are expected to generate in excess of $15,000,000 in annual recurring revenue and supply up to 3,000 homes with clean electricity.

As each solar installation is built, and connected into the Ontario electricity grid, it will generate recurring revenue. EHT anticipates that it will construct up to 3 solar energy installations per month in 2015 and up to 5 solar energy installations per month in 2016 and 2017. 

The Debentures are secured obligations of the Company having priority in terms of payment of principal and interest over all existing and future unsecured indebtedness of the Company. The Debentures mature on March 4, 2018 with interest payable thereon bi-annually (each, an "Interest Payment Date").  

Each $1,000 principal amount of Debenture is convertible by the holder at a price of $1.00 per common share of the Company (each, a "Share") into 1,000 Shares any time prior to the earlier of maturity and redemption of the Debentures. 

The Company has the right, at any time after eighteen months, on 30 days prior notice, provided that the volume weighted average trading price ("VWAP") of the Shares on the TSX Venture Exchange (the "TSXV") is a minimum of $1.00 for the 20 consecutive trading days ending five trading days prior to the date on which notice is given, to either: (a) redeem the Debentures, in whole or in part at a redemption price equal to their principal amount plus accrued and unpaid interest, if any, or (b) subject to certain conditions, force conversion of the Debentures at a per Share conversion price equal to 95% of the VWAP.

On maturity, the Company may, at its option, on not less than 40 days prior notice and subject to regulatory approval, repay each $1,000 principal amount of the Debentures by issuing that number of freely tradeable Shares obtained by dividing each $1,000 principal amount of the Debentures by the greater of: (i) 95% of the VWAP for the 20 consecutive trading days ending five trading days preceding the date fixed for maturity; and (ii) $1.00.

Kingsdale Capital Markets Inc. (the "Agent") acted as agent for the private placement. EHT has paid the Agent cash compensation in the amount of $195,000 and has granted the Agent 225,000 non-transferable compensation warrants (each, a "Compensation Warrant"), with each Compensation Warrant entitling the Agent to purchase one Share at a price of $1.00 per Share for a period of two years.

The Debentures (and the Shares issuable thereunder) are subject to a four month hold period which expires on July 5, 2015.

Forward-Looking Information

The information in this news release, including the Company's anticipated use of proceeds, proposed solar energy installation construction, anticipated revenues and its intention to close the full Offering, includes certain information and statements that constitute forward-looking information. These forward-looking statements are based upon assumptions, principally EHT's ability to successfully complete the acquisition of the above-described feed-in-tariff contracts and commence construction of solar energy installations, the anticipated revenues to be generated by the Power Purchase Agreements and such assumptions are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may vary materially from those anticipated and indicated by these forward-looking statements. Although EHT believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. Except as required by law, EHT disclaims any intention and assumes no obligation to update or revise any forward-looking information to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

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.

About EnerDynamic Hybrid Technologies

EHT delivers proprietary, turn-key energy solutions which are intelligent, bankable and sustainable. Our 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. Through our 90,000 square foot facility in Ontario, Canada and our growing international foot-print we are able to manufacture, distribute and install leading world class energy solutions across the globe. EHT excels where no electrical grid exists in addition to traditional support to established electrical networks which is the new era in the renewable industry.

SOURCE Enerdynamic Hybrid Technologies Corp.

For further information: David Prue, Corporate Communications, 905-401-8303, dprue@ehthybrid.com; Company Website: www.ehthybrid.com


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