TORONTO, Aug. 24, 2015 /CNW/ - Enerdynamic Hybrid Technologies Corp. ("EHT" or the "Company") (TSX-V: EHT) is pleased to announce a proposed early warrant exercise incentive program (the "Warrant Incentive Program") designed to encourage the exercise of the common share purchase warrants ("Warrants") exercisable for common shares of the Company ("Common Shares") which were issued on August 29, 2014 in connection with the Company's acquisition of Enerdynamic Hybrid Technologies Inc. Each of the Warrants entitles the holder to acquire one (1) Common Share at a price of Fifty Cents ($0.50) per share at any time prior to 5:00 p.m. (Eastern Standard Time) on the 29th day of August, 2015 (the "First Anniversary"), and, at a price of Seventy-Five Cents ($0.75) per share during the period following the First Anniversary and ending at 5:00 p.m. (Eastern Standard Time) on the 29th day of August, 2016.
There are an aggregate of 24,587,500 Warrants outstanding as of today's date, all of which have an exercise price of $0.50 per common share until August 29, 2015.
Pursuant to the Warrant Incentive Program, each of the holders of Warrants that exercises Warrants during an early exercise period (the "Early Exercise Period") shall be issued an additional warrant entitling such holder to acquire one-quarter (1/4) of a common share of the Company exercisable at an exercise price of Ninety-Five Cents ($0.95) per Common Share, at any time prior to 5:00 p.m. (Eastern Standard Time) on the 31st day of August, 2016 (collectively, the "New Warrants"). There will be an aggregate of up to 6,146,875 New Warrants issued in connection with the Warrant Incentive Program.
The Early Exercise Period will commence on August 28, 2015 at 9:00 a.m. (Toronto time) and expire on September 28, 2015 at 5:00 p.m. (Toronto time).
The Warrant Incentive Program is subject to final approval from the TSX Venture Exchange.
All New Warrants issued will be subject to a four-month hold period pursuant to applicable securities regulations commencing on the date of issuance of the New Warrants. Any Common Shares issued upon the exercise of the New Warrants within the hold period will be similarly restricted from trading for the balance of the hold period.
In the event that all of the Warrants are exercised under the Warrant Incentive Program prior to August 29, 2015, the Company expects to receive gross proceeds of up to $12,293,750 and issue an aggregate of up to 24,587,500 Common Shares pursuant to the exercise of the Warrants, and 6,146,875 New Warrants, upon the exercise of which, 6,146,875 common shares will be issued as additional common shares as a result of the Warrant Incentive Program. The proceeds raised from the early exercise of the Warrants will support its planned growth initiatives and provide working capital for the Company.
In conjunction with the Warrant Incentive Program, the Company is further pleased to announce a proposed amendment to the terms of certain Warrants such that the First Anniversary be extended from the 29th day of August, 2015, to the 28th day of September, 2015 (the "Warrant Amendment").
The Warrant Amendment shall only apply to those Warrants issued in connection with private placements completed by the Company's wholly-owned subsidiary, Enerdynamic Hybrid Technologies Inc. ("EHTI"), prior to the acquisition of EHTI by the Company, which constituted the Company's qualifying transaction pursuant to the policies of the Exchange. The Warrant Amendment will apply exclusively to an aggregate number of 20,900,000 issued and outstanding Warrants (the "Eligible Warrants"); the balance of 3,687,500 Warrants will not be subject to the Warrant Amendment. For greater clarity, the Warrant Amendment shall result in the amendment to the terms of the Eligible Warrants such that holders shall be entitled to acquire one (1) Common Share of the Company at a price of Fifty Cents ($0.50) per Common Share at any time prior to 5:00 p.m. (Eastern Standard Time) on the 28th day of September, 2015, rather than the 29th day of August, 2015. In all other respects, the terms of the Eligible Warrants shall remain unchanged and in full force and effect.
The Warrant Amendment is subject to final approval from the TSX Venture Exchange.
The Warrants are not listed on any stock exchange, nor will the New Warrants.
If a Warrant holder elects not to exercise such holder's Warrants prior to the end of the exercise period, such unexercised Warrants will remain outstanding and will continue to be exercisable for common shares on the same terms applicable to such Warrants as they existed prior to the Warrant Incentive Program.
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 world leading 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.
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.
The statements herein that are not historical facts are forward-looking statements. Forward-looking information involves risk, uncertainties and other factors that could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements regarding, among other things, the Settlements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, regulatory approval processes. Although EHT believes that the assumptions used in preparing the forward-looking information in this news release are reasonable, including that all necessary regulatory approvals will be obtained in a timely manner, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. EHT disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable securities laws.
SOURCE Enerdynamic Hybrid Technologies Corp.
For further information: John Gamble, Director, (289) 488-1699, [email protected], Company Website: www.ehthybrid.com; Stephanie Thompson, Administrative Assistant, (289) 488-1699, [email protected], Company Website: www.ehthybrid.com