CALGARY, Oct. 27, 2017 /CNW/ - MATRRIX Energy Technologies Inc.
("MATRRIX" or the "Corporation") (TSX-V: MXX) is pleased to announce that it has successfully closed the second and final tranche
(the "Final Tranche") of its previously announced private placement (the "Offering") of unsecured, subordinated convertible
debentures of the Corporation (the "Debentures"). An aggregate principal amount of $307,000 of
Debentures was issued under the Final Tranche, bringing the total principal amount of Debentures issued under the Offering to
$2,612,000.
The Debentures will mature on October 31, 2020 (the "Maturity Date"), will bear interest at a
rate of 10% per annum paid semi-annually, in arrears on December 31 and June
30 of each year, and will be convertible into common shares in the capital of the Corporation ("Common Shares") at a price
of $0.49 per Common Share based on a conversion premium of approximately 25% to the last trade on
the TSX Venture Exchange (the "TSXV") on October 6, 2017 (being the date on which the Offering was
announced), subject to adjustments in certain circumstances.
The principal amount of the Debentures (the "Principal Amount") shall be convertible at the option of the holder at any time
prior to the close of business on the earlier of (i) the business day immediately preceding the Maturity Date or, (ii) if called
for redemption, on the business day immediately preceding the date fixed for redemption, or (iii) if called for repurchase
pursuant to a transaction resulting in any person or persons acquiring voting control or direction over at least 50% of the
aggregate voting rights attached to the Common Shares then outstanding, on the business day immediately preceding the payment
date.
The Debentures may not be redeemed by the Corporation prior to October 31, 2018. On and
after October 31, 2018 and prior to October 31, 2019, the Debentures
may be redeemed by the Corporation, in whole or in part from time to time, on not more than 60 days and not less than 40 days
prior notice at a redemption price equal to their Principal Amount plus accrued and unpaid interest, if any, up to but excluding
the date set for redemption, provided that the weighted average trading price of the Common Shares on the TSXV, for the 30
consecutive trading days ending five trading days prior to the date on which notice of redemption is provided is at least 125% of
the conversion price. On and after October 31, 2019 and prior to the Maturity Date, the Debentures
may be redeemed by the Corporation, from time to time, on not more than 60 days and not less than 40 days prior notice of
redemption at a redemption price equal to the Principal Amount plus accrued and unpaid interest, if any, up to but excluding the
date set for redemption.
The net proceeds of the Offering will be used by the Corporation (i) for general corporate and working capital purposes and
(ii) to partially fund the acquisition by the Corporation of three complete tele-double drilling packages with spares from Vortex
Drilling Ltd., through its receiver Deloitte Restructuring Inc. (the "Asset Acquisition").
Insiders of the Corporation participated in the Offering and purchased Debentures having an aggregate Principal Amount of
$950,000, or approximately 36.4% of the Offering.
The Debentures issued under the Final Tranche are subject to a hold period under applicable securities laws until February 28, 2018.
The Corporation is also pleased to announce that it has entered into an amended and restated commitment letter with Alberta
Treasury Branches (the "Lender") providing for a revolving operating loan facility in the initial principal amount of
$3,000,000 and a non-revolving acquisition loan facility in the amount of $2,500,000. The operating facility is to be used by the Corporation for working capital purposes and can be
increased by an additional $2,000,000 on the pro forma meeting of certain financial tests and at
the Lender's discretion. The acquisition loan facility is available to finance a portion of the Asset Acquisition. The
acquisition facility is designed to be a bridge loan and the interest rate thereon will increase by 100 bps 120 days following
closing.
About MATRRIX
The Corporation commenced operations in 2011. MATRRIX has grown its concurrent capacity of horizontal and directional drilling
systems ("Systems") organically with the acquisition and assembly of 25 Systems as at the date of this press release. MATRRIX has
developed and implemented a proprietary system called D2ROXTM (pronounced DEE-ROCKS) to aid the Corporation
and its oil and gas clients to drive predictable, repeatable, cost effective, safe field operations at the rig site.
Forward-looking Information
Certain statements contained in this press release constitute forward-looking information. This information relates to future
events or the Corporation's future performance. All information other than statements of historical fact is forward-looking
information. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend",
"propose", "might", "may", "will", "could", "believe", "predict" and "forecast" are intended to identify forward-looking
information.
In particular, this press release contains forward-looking information pertaining to the following: the Corporation's
intention to complete the Offering and the use of proceeds from the Offering.
This forward-looking information involves material assumptions and known and unknown risks and uncertainties, certain of which
are beyond the Corporation's control. The Corporation's Annual Information Form and other documents filed with securities
regulatory authorities (accessible through the SEDAR website www.sedar.com)
describe the risks, the material assumptions and other factors that could influence actual results and which are incorporated
herein by reference. Actual results, performance or achievements could differ materially from those expressed in, or implied by,
this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the
forward-looking information will transpire or occur, or if any of them do so, what benefits the Corporation will derive
therefrom.
The forward-looking information contained herein is provided as at the date hereof and the Corporation does not undertake any
obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new
information, future events or otherwise, except as may be required by applicable securities laws.
Neither the 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 or accuracy of this release.
SOURCE MATRRIX Energy Technologies Inc.
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