NEWS ALERT ustainable Energy Technologies Ltd (STG:TSXV)
- News Alert
Sustainable Energy Issues $800,000 5-Year Term
Debt to Accelerate Introduction of 3rd Generation
Platform and Enable Greater Supply Chain Flexibility
Sustainable Energy Technology Ltd. (TSX VENTURE:STG)
("Sustainable Energy" or the "Company") announced
today that it has issued $800,000 in 5-year
subordinated debentures ("Debentures") to a group
of private investors, including existing
shareholders and members of its management team.
In total management acquired approximately 15%
of the issue.
The additional funding enables the Company to
accelerate the introduction of its 3rd generation
PARALEX(TM) platform and provides additional
working capital to increase flexibility in the
management of its supply chain.
"In addition to cost reduction, Sustainable
Energy will commercialize an application
agnostic electronics/firmware module which
allows the Company to execute on a longer
term OEM strategy where the Company supplies
the electronics and firmware to multiple
customers for integration into their own
product applications", commented Michael
Carten, CEO of Sustainable Energy.
"The capital infusion enables us to
move forward on our cost reduction plan
to generate higher margins, reduce our
breakeven point and take the Company to
profitability sooner."
The Debenture is being issued at an
original issue discount of 12.5% to
net the Company $700,000 and bears
interest at a rate of 3% per annum,
plus an amount equal to 8/10 of 1%
of the consolidated revenues realized
by the Company. Interest is payable
quarterly in arrears. The Debenture
is callable by the Company at par at any time
after the second anniversary of issue. Purchasers
of the Debentures will also be issued a total of
2.8 million restricted common shares of the Company
which will be released on a Quarterly basis over
the 2 year period following Closing. The shares
will be subject to a 4 month hold which expires
on October 30, 2012.