Vancouver, British Columbia--(Newsfile Corp. - March 13, 2018) - Ted Konyi, CEO, Smartcool Systems Inc. (TSXV: SSC) (OTC Pink:
SSCFF) (FSE: R3W) ("Smartcool" or the "Company") is pleased to announce that the Company has entered into a letter agreement
pursuant to which it proposes to acquire Total Energy Concepts Inc. ("TEC"). The letter agreement contemplates that TEC will merge
into a wholly-owned Nevada subsidiary of Smartcool to create a new TEC division of the Smartcool group of companies, with Damian
Smith continuing as the Chief Executive Officer of the division.
The letter agreement contemplates that Smartcool will acquire 100% of the outstanding shares of TEC in return for US$150,000 in
cash payable over 12 months from the closing date, US$850,000 payable in Smartcool common shares priced at the closing market price
on the date before the transaction closes (the "Closing Price"), and 5,000,000 non-transferable share purchase warrants. Each of
these share purchase warrants will entitle Mr. Smith to purchase one additional Smartcool common share at the Closing Price until
the fifth anniversary of the closing date. The letter agreement is also subject to customary conditions, including the execution of
a definitive agreement and TSX Venture Stock Exchange Approval.
TEC is a Minnesota-based distributor of Smartcool products and other energy efficient products that has been in business since
2003. Damian Smith, President and Chief Executive Officer of TEC, has been very successful in growing the company into
profitability and developing several proprietary products.
These include Power Factor Correction equipment (PFC), Voltage Conditioning Units (VCU) and Intelligent Generator Optimization
Systems (IGOS). In addition to these proprietary products, TEC markets a host of energy efficiency products to provide clients a
holistic approach to energy savings in an effort to help clients reduce energy consumption and save money.
Damian Smith and Ted Konyi believe that the synergies from a strategic merger of these two companies present a very attractive
growth opportunity.
Ted Konyi commented, " I first met Damian 3 years ago and was immediately impressed with the way he combined his engineering
background with sound sales strategies, a rare combination. As I have become more familiar with TEC's suite of products, the
tremendous synergies between the companies has become impossible to ignore. I am very excited for this merger to occur and I am
eagerly anticipating significant benefits for all parties."
Damian Smith said "I am excited to join the Smartcool team at a time when major inroads are being made by a number of Smartcool
divisions, as well as our own. Although TEC has been enjoying rapid growth in recent years, Ted and I believe that the combination
of our two company's sales and distributor networks, as well as the complimentary products that we can offer as a comprehensive
solution are key to growth in new sales opportunities, both domestically as well as internationally."
About TEC
Total Energy Concepts Inc. Founded in 2003, offers a holistic approach to Energy Savings with its client base. Solutions include
LED lighting, Power Quality and Protection Strategies, Power Factor Correction, Intelligent Motor and Facility Controls as well as
other energy efficiency upgrade technologies. The company has successfully delivered its products to thousands of companies across
North America and includes a diverse customer base from C-stores to Fortune 500 Companies. Working through 14+ representatives has
generated significant sales and profitability providing the opportunity for continued growth.
About Smartcool
Smartcool Systems Inc. provides cutting edge energy efficient and energy cost reduction solutions for businesses around the
world. The ECO3, ESM and ECOHome are Smartcool's unique retrofit technologies that reduce the energy consumption of
compressors in air conditioning, refrigeration and heat pump systems by up to 40%.
For further information
WEB www.smartcool.net and www.smartcooleco3.com
EMAIL info@smartcool.net
Investor inquiries
Mike Kordysz
Vice President, Investor Relations
TEL +1 604 904 8632
EMAIL mike.kordysz@smartcool.net
Legal Notice Regarding Forward Looking Statements
This news release contains "forward looking statements". Forward-looking statements are projections of financial performance
or future events. Forward-looking statements can be identified by the use of words such as "expect", "anticipate",
"intend", "plan", "believe", "estimate" and words of similar meaning. Forward-looking statements are based on
management's current expectations and assumptions and they are subject to risks that may cause actual results to differ
materially from those expressed or implied by such forward looking statements. Forward-looking statements in this news
release include those concerning the belief that the synergies from a strategic merger of these two
companies presents a very attractive growth opportunity, its anticipation of significant benefits for all parties
including growth in new sales opportunities. These statements are subject to risks that may cause the actual results to
be materially different in future periods from those expressed or implied by such forward looking statements. Risks that may
prevent or delay the forward looking statements from coming to fruition as anticipated include the availability of working
capital, risks inherent in product development, as well as market factors that may increase costs or time to market. It is our
policy not to update forward looking statements except to the extent required under applicable securities laws. Further information
on the Company is available at www.sedar.com or at the Company's website,
www.smartcool.net.
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