Bridge facility to fund commercial project activities
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QUEBEC CITY, Dec. 9, 2016 /CNW Telbec/ - CO2 Solutions Inc. ("CO2 Solutions" or the "Corporation") (TSXV: CST) announces that it has entered into a loan agreement with Dundurn Capital Partners ("DCP"), an affiliate of Robert Manherz, a director of the Corporation, for a loan in the amount of $300,000 (the "Loan").
The Loan will be repayable in full on December 8, 2017. In addition, CO2 Solutions may prepay all or a portion of the Loan in advance at any time without penalty. The Loan bears interest at an annual rate of 12% and includes a management fee of 3% of the amount of the Loan. The Corporation intends to use the Loan for working capital and general corporate purposes.
"This financing is a bridge facility as we await final sign off and release of government subsidies reimbursing the company for costs incurred in relation to approved commercial and other projects," stated Thom Skinner, CFO of CO2 Solutions. "As an organization we are gearing up towards the further commercialization of our technology and continue working towards the implementation of our first commercial project, capturing CO2 at a pulp and paper mill and reusing the captured carbon in a nearby greenhouse facility to increase plant yield. These projects will be substantially funded through government assistance, and this bridge facility is intended to enable us to complete certain aspects of the work prior to the final contribution agreements being signed and corresponding funding being received."
As Mr. Manherz is considered a "related party" of the Corporation under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions in Quebec) ("MI 61-101") as a director and holder of more than 10% of the common shares of the Corporation, his participation in the Loan will constitute a "related party transaction" as defined under MI 61-101. The Loan is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the Loan does not exceed 25% of the Corporation's market capitalization. The Loan and its terms have been reviewed and unanimously approved by the disinterested directors of the Corporation.
About CO2 Solutions Inc.
CO2 Solutions is an innovator in the field of enzyme-enabled carbon capture and has been actively working to develop and commercialize the technology for stationary sources of carbon pollution. CO2 Solutions' technology lowers the cost barrier to Carbon Capture, Sequestration and Utilization (CCSU), positioning it as a viable CO2 mitigation tool, as well as enabling industry to derive profitable new products from these emissions. CO2 Solutions has built an extensive patent portfolio covering the use of carbonic anhydrase, or analogues thereof, for the efficient post‐combustion capture of carbon dioxide with low‐energy aqueous solvents. Further information can be found at www.co2solutions.com.
CO2 Solutions Forward-looking Statements
Certain statements in this news release may be forward-looking. These statements relate to future events or CO2 Solutions' future economic performance and reflect the current assumptions and expectations of management. Forward-looking statements in this news release include, but are not limited to, the Corporation's anticipated use of proceeds. Factors that could cause actual results to differ materially from such forward-looking statements include, but are not limited to, general business and economic uncertainties and adverse market conditions as well as those risks set out in the Corporation's public documents filed on SEDAR. Readers are cautioned not to place undue reliance on such forward-looking statements. CO2 Solutions undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.
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 CO2 Solutions Inc.
For further information: Investor Relations and Media Contact: CO2 Solutions: Thom Skinner, 418-842-3456, ext. 223, [email protected]; www.co2solutions.com; NATIONAL Equicom: Marc Lakmaaker, 416-848-1397, [email protected]