RE:RE:My 55 cents St. JOHN’S, NEWFOUNDLAND – 17 DECEMBER 2019 /GLOBE NEWSWIRE/ – Kraken Robotics Inc. (TSX-V: PNG) (OTCQB: KRKNF) (“Kraken” or the “Company”), is pleased to announce that it has reached an agreement with the minority shareholder of Kraken Power GmbH (“Kraken Power”), to acquire the remaining 25% of Kraken Power not currently owned by Kraken (the “Transaction”). Consideration for the Transaction will be €350,000, consisting of €250,000 in cash and the issuance of 236,258 common shares of the Company at a deemed price of $0.62 per share, representing the Canadian dollar equivalent of €100,000 (the “Consideration Shares”). The issuance of the Consideration Shares requires the approval of the TSX Venture Exchange, and such Consideration Shares are subject to a four-month statutory hold period commencing on the date of issuance. The Transaction is expected to close by December 31, 2019. Completion of the Transaction will trigger a change of control payment to an arm’s length third-party lender to Kraken Power in an amount equal to €120,000 payable in two tranches of €60,000 over calendar 2020 for which Kraken will be responsible.
ST. JOHN’S, NEWFOUNDLAND – 7 JANUARY 2019/GLOBE NEWSWIRE/– Kraken Robotics Inc. (TSX-V: PNG) (OTCQB: KRKNF) (“Kraken” or the “Company”), is pleased to announce, that it has completed the majority acquisition of Kraken Power GmbH. Through the conversion of an existing note receivable to equity and a cash payment of approximately €0.1 million, Kraken has increased its ownership in Kraken Power GmbH to 75%. Based in Rostock, Germany, Kraken Power GmbH currently employs a 20-person team comprised of highly skilled engineers, technicians and administration staff. During Q4 2018, Kraken Power increased manufacturing capacity through the expansion of a new facility and addition of larger production equipment. In 2019, it is anticipated that additional staff and equipment will be added to meet the demand for existing and future contracts.
Kraken Robotics Plans to Increase Ownership in Kraken Power GmbH
The batteries for Ocean Infinity will be built by Kraken Power GmbH (“Kraken Power”), an entity in which Kraken currently holds a 19.9% interest. Kraken intends to increase its ownership position in Kraken Power to 75% by the end of 2018. This will be accomplished through the conversion of a convertible note of €110,000 into equity in Kraken Power as well as additional cash payment of €111,200. In addition, while Kraken only holds a 19.9% equity interest in Kraken Power at the end of Q3 2018, under IFRS 10 accounting rules relating to controlled entities, Kraken is required to consolidate Kraken Power financial results in Q3.