Company: MicroPlanet Technology Corp.
Stock Listing: MP:TSXV
Stock Listing (US): MCTYF: OTC
Web Site: www.microplanet.com
SEATTLE, WA, July 31, 2012 /CNW/ - MicroPlanet Technology Corp. ("MicroPlanet" or the "Company"), (MP:TSXV & MCTYF:OTC) a provider of smart grid technology, which
significantly increases efficiency, quality, and conservation of
electricity, today is pleased to announce that it has closed the second
and final tranche of its previously announced non-brokered private
placement of secured, convertible notes (the "Convertible Note Private Placement") in the principal amount of $300,000 (the "Notes"). The Notes have a two-year term and bear interest at a rate of
twelve percent (12%) per annum payable in arrears upon maturity. The
holders of the Notes will have the option to convert the principal
amount into common shares in the capital of the Company at a conversion
price of $0.10 per share, or receive full repayment in cash at the end
of the term. The Company may, at its option, at any time before the
maturity date, pre-pay and redeem the Notes, provided that interest is
paid in full to the original maturity date. The Company intends to use
these proceeds to finance the fulfillment of expected orders and for
general corporate purposes. The Notes were sold pursuant to applicable
registration and prospectus exemptions to qualified investors in
Canada. The Notes are subject to a four-month hold period in accordance
with applicable securities laws.
Shares for Debt
In conjunction with the closing of the Convertible Note Private
Placement, the Company is also pleased to announce that is has entered
into agreements with various directors, employees and other creditors
to settle debts in the aggregate amount of $394,551 in exchange for the
issuance of an aggregate of 7,891,028 common shares at a deemed price
of $0.05 per common share (the "Debt Settlement"). Closing of the Debt Settlement is subject to the receipt of approval
by the TSX Venture Exchange and applicable securities regulatory
authorities. The common shares issuable in connection with the Debt
Settlement will be subject to a four-month hold period in accordance
with applicable securities laws.
Closing of Equity Financing
MicroPlanet is also pleased to announce the closing of the first tranche
of a non-brokered private placement comprised of 5,560,000 common
shares at a price of $0.05 per common share for aggregate gross
proceeds of $278,000 (the "Equity Private Placement"). MicroPlanet previously received conditional listing from the TSX
Venture Exchange to sell up to 30,000,000 common shares at a price of
$0.05 per common share for gross proceeds of $1,500,000. The common
shares were sold pursuant to applicable registration and prospectus
exemptions to qualified investors. The common shares are subject to a
four-month hold period in accordance with applicable securities laws.
Closing of the Equity Private Placement is subject to final approval
from the TSX Venture Exchange and applicable securities regulatory
Extension of Convertible Notes
MicroPlanet has received final approval from the TSX Venture Exchange to
extend the maturity and interest payable of its existing convertible
notes to December 31, 2013, as previously announced on June 19, 2012.
The total principal amount of the convertible notes subject to
extension is $2,013,000 involving a total of nine note holders.
About MicroPlanet Technology Corp.
MicroPlanet solutions improve power quality and save energy by
dynamically managing incoming voltage to a home or business through the
use of patented, advanced power electronics. MicroPlanet's technology
has been deployed in seven countries by more than 20 utilities, the U.S
military and multiple commercial customers to save energy, improve
power quality and grid efficiency and to facilitate the integration of
renewable energy sources, including solar and wind. MicroPlanet is
based in Seattle, WA and is listed on the TSXV trading under the stock
symbol: MP. www.microplanet.com.
THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL FUTURE
RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS,
UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD
INFLUENCE ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED
IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S
MOST RECENTLY FILED ANNUAL AND QUARTERLY REPORTS. ACCORDINGLY, NO
ASSURANCES CAN BE GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE
FORWARD-LOOKING STATEMENTS WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM
DO SO, WHAT BENEFITS THE COMPANY WILL DERIVE THEREFROM.
NEITHER THE TSXV NOR ITS REGULATION SERVICES PROVIDER (AS THE TERM IS
DEFINED IN THE POLICIES OF THE TSXV) ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE: MicroPlanet Technology Corp.
For further information:
MicroPlanet Investor Relations:
Dave Burwell / Grant Howard
The Howard Group
MicroPlanet Company Contacts:
President & Chief Executive Officer