CALGARY, March 31, 2014 /CNW/ - EmberClear Corp. (TSXV: EMB) ("EmberClear" or the "Company") is pleased to announce that it has repaid in full all amounts outstanding under its bridge loan that was due May 31, 2014 (for a total payment of approximately $1.5 million) and will pay the overdue interest on its 12.0% senior convertible unsecured debentures (the "Debentures") on March 31, 2014 (for a total payment of approximately $280,000). The payments are being funded using a portion of the proceeds received on the formation of the previously announced partnership with Tyr Energy with respect to the development of EmberClear's Good Spring natural gas combined cycle power plants.
EmberClear is also pleased to announce that, with the approval of the holders of the Debentures, it has executed a supplemental indenture pursuant to which the maturity date of the Debentures has been extended from June 30, 2014 to June 30, 2015 and the amount payable on maturity of the Debentures has been increased to 103% of the original principal amount plus accrued and unpaid interest.
The Company also announces that it has discovered that a long-time employee in the accounting department had misappropriated funds from the Company. In response to the discovery, EmberClear commenced an internal review which is ongoing. Our initial findings are that over a 14-month period approximately $700,000 of amounts expensed in the Company's financial statements consisted of misappropriated funds. EmberClear has taken steps to strengthen internal controls to help ensure that a similar incident does not occur in the future. As part of the internal review and in consultation with the Company's auditors, the impact on historical financial statements is being assessed. The employee in question has been terminated with cause.
EmberClear is a global energy development company specializing in low-emission, commercial scale 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".
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.
SOURCE: EmberClear Corp.
For further information:
For more information please visit www.emberclear.com or contact David Anderson, Chief Executive Officer of EmberClear, at (403) 264-8817.