CALGARY, Sept. 18, 2013 /CNW/ - EmberClear Corp. (TSXV: EMB) ("EmberClear" or the "Company") is pleased to announce that its subsidiary, EmberClear Reserves Inc. ("EmberClear Reserves"), has obtained a $2 million secured bridge loan from a third party. Under the terms of the loan, $400,000 was advanced to EmberClear Reserves on closing with the remaining $1.6 million to be advanced monthly in eight tranches of up to $200,000 per month.
The purpose of the bridge loan is to provide the Company with additional capital to support the monetization of the Good Spring natural gas combined cycle power project ("Good Spring NGCC1"), in northeastern Pennsylvania, to the benefit of EmberClear's shareholders.
"With this transaction, we believe we will have the ability to evaluate more options for the ownership of this facility. This region deserves a state of the art power plant and we are working hard to make that a reality," stated Nick Cohen, Chief Operating Officer.
Pursuant to the terms of the bridge loan, interest accrues at a rate of 18% per annum and the Company will pay a facility fee of 15% of the total principal amount advanced over the term of the loan. The maturity date for the loan is May 31, 2014. The loan is secured by the assets of EmberClear Reserves and Future Power PA Inc., with Future Power PA Inc. and EmberClear having also guaranteed EmberClear Reserves' obligations under the loan.
EmberClear is a global energy development company specializing in low-emission energy projects. The Company is primarily focussed on natural gas in the United States as an input to create electricity, industrial chemicals and transportation fuels. We utilize our proven expertise in permitting, site-control, and engineering feasibility to create turnkey projects with contracted returns suitable for long-term owners and operators of long-life capital assets. EmberClear's shares are listed on the TSX Venture Exchange under the trading symbol "EMB".
For more information please visit www.emberclear.com.
Forward Looking Statement
Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "potential", "target", "seek", "budget", "predict", "might" and similar words suggesting future events or future performance. All statements other than statements of historical fact may be forward-looking statements. In particular, this document contains forward-looking statements pertaining to, without limitation, the following: our ability to support the Good Spring NGCC1 project with the additional capital; the Company's ability to monetize the Good Spring NGCC1 project to the benefit of shareholders; and the Company's ability to generate more options for the ownership of the facility. With respect to forward-looking statements contained in this document, we have made assumptions regarding, among other things, the following: ability to support the natural gas combined cycle ("NGCC") projects; the level of resources required to complete the sale of the NGCC 1 Project, stable investment conditions in North America; maximizing value of the natural gas project for shareholders; access to markets; and attracting appropriate financial participants. Although we believe that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the following: the possibility that EmberClear will not have the financial, management or other resources to develop, monetize, construct or operate a NGCC power plant or other project; the possibility that EmberClear will not be able to establish other aspects of financing to begin construction on a start of the art power plant; the possibility that EmberClear will not be able to take advantage of the market trends such as the availability and price of natural gas and electricity pricing. Readers are cautioned that this list of risk factors should not be construed as exhaustive. The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
© 2013 EmberClear Corp. All rights reserved. All other trademarks are the property of their respective owners.
SOURCE: EmberClear Corp.
For further information:
David G. Anderson
+1 (403) 264-8817