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 authorities.
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.
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MicroPlanet Company Contacts:
President & Chief Executive Officer