VICTORIA, Jan. 14 /CNW/ - Streetlight Intelligence Inc. ("SLQ") and Hydro Ottawa Holding Inc. ("Hydro Ottawa") are pleased to jointly announce that Hydro Ottawa has completed a second strategic investment in the Company.
In consideration of a payment of $500,000, Hydro Ottawa has acquired an option to purchase up to 5,000,000 common shares of SLQ ("Purchase Option") at an exercise price of $0.12 per share, exercisable on or before January 13th, 2011. The Purchase Option includes a put right (the "Put Right"), whereby Hydro Ottawa may require SLQ to repurchase and cancel the Purchase Option for $500,000 plus an amount equal to an inherent return on the investment of approximately 10% per annum. In order to provide Hydro Ottawa with security to support SLQ's obligation to repurchase the Purchase Option, SLQ granted Hydro Ottawa a first priority security interest over all of the present and future property, assets and undertaking of the Issuer, including all fixed assets, intellectual property and other intangibles. If the Purchase Option is instead exercised, SLQ will then receive a further $600,000 for an aggregate investment amount of $1,100,000. The Purchase Option and any common shares issuable upon exercise of the Purchase Option shall be subject to a hold period expiring on April 23rd, 2010.
"We are extremely pleased to have Hydro Ottawa build on its strategic investment in contributing to a more sustainable energy future," states Vince Krynski, Chief Executive Officer of SLQ. "And, we are excited about our future relationship and reaching our collective objectives for efficient use of energy and improved management of resources."
"Streetlight Intelligence has a proven, field tested technology that will significantly improve the energy efficiency of street lighting, and help us to fulfill our mandate as a conservation enabler," said Rosemarie Leclair, President and Chief Executive Officer of Hydro Ottawa Holding Inc. "They have continued to move this technology towards commercialization, and we are excited about its future prospects." Hydro Ottawa is also continuing its discussions with SLQ regarding a broader strategic investment that could include a future investment, the establishment of a distribution agreement between SLQ and Hydro Ottawa for the Province of Ontario, as well as the potential purchase of SLQ's products and services. The discussions are preliminary and no assurances can be made that the discussions will result in any of the above-mentioned outcomes.
About Hydro Ottawa Holding Inc.
Hydro Ottawa Holding Inc., through its subsidiaries, maintains one of the safest, most reliable and cost-effective electricity distribution systems in Ontario. Hydro Ottawa currently serves 291,000 homes and businesses in the Ottawa area and operates some of the greenest and most environmentally friendly power generating stations in Canada. It owns and operates two subsidiaries: Hydro Ottawa Limited and Energy Ottawa Inc. Hydro Ottawa Holding Inc. is wholly owned by the City of Ottawa.
About Streetlight Intelligence Inc.
Streetlight Intelligence Inc. develops advanced street light optimization systems - and was recently recognized as the "New Technology of the Year" at the British Columbia Hydro 2009 Power Smart Excellence Awards. Trademarked as Lumen IQ(TM), SLQ's technologies provide improved lamp performance, adaptive lighting control, and system-wide communications for centralized street light management. SLQ's systems enable street light operators to significantly reduce their community's energy consumption, maintenance costs and environmental impact.
SLQ is a public company listed on the TSX Venture Exchange under the symbol "SLQ".
Certain statements contained in this news release constitute "forward-looking statements" as such term is used in applicable Canadian securities laws. These statements relate to analysis and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, statements concerning anticipated receipt of funds from this financing, the purchase of 150 Lumen IQ(TM) units, a potential broader strategic investment by Hydro Ottawa in SLQ, a potential distribution agreement and other factors and events described in this news release should be viewed as forward-looking statements to the extent that they involve estimates thereof. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the ability and timing of the Corporation to complete the financing, the receipt of funds from the initial order of 150 Lumen IQ(TM) units, the effects of a recessionary economy and volatile capital markets and such other business risks as discussed herein and other publicly filed disclosure documents of the Corporation which are specifically incorporated herein by reference. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements there may be other factors that cause actions events or results not to be anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
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 and accuracy of this release.
SOURCE STREETLIGHT INTELLIGENCE INC.
For further information: For further information: visit www.StreetlightIQ.com or contact: Vincent Krynski, Chief Executive Officer, (403) 571-2412, vkrynski@StreetlightIQ.com; D. Mark Alenius, CA, Chief Financial Officer, (403) 803-7390, malenius@StreetlightIQ.com