Sustainable Energy Technologies Ltd: Loan from Canadian Chartered Bank
Calgary, Alberta - Sustainable Energy Technologies Ltd ("Sustainable Energy" or the "Company") a manufacturer of next generation solar inverters announced today that it renewed its existing operating line commitment for up to $1.5 million from a Canadian Chartered Bank.
Doughty Hanson has agreed to extend its previously announced $1.5 million standby equity commitment to May 1, 2013, as additional security for the operating line subject to specified conditions. The operating line provides liquidity to the Company as it ramps production to meet customer demand over the next quarter.
Based on current customer forecasts, the Company anticipates production volumes increasing to just under 3 megawatts per month during the in the third calendar quarter of 2012. Current customer demand pipelines continue to grow and the Company expects production to increase to an average 4 megawatt per month in the last calendar quarter driving further growth through 2013.
The operating line commitment by Doughty Hanson is in addition to a previously announced equity commitment for $1.5 million of which $1.0 million has been invested, which remains in place. The Company does not expect to call on the remaining equity commitment.
As consideration for the extension, the Company will issue common share purchase warrants in respect of 12 million shares to Doughty Hanson. An aggregate of 4,848,484 warrants previously issued to Doughty Hanson in connection with the previously announced equity commitment expired unexercised. The new warrants are exercisable for a period of one year at $0.05 per share if the common shareholders approve a consolidation of the common shares within the next 180 days with the warrants being subject to the consolidation; or at $0.10 per share if the consolidation is not approved.
Forward Looking Information
The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, we include: anticipated production volumes and customer demand, statements concerning the possible consolidation of the Company's listed securities and the timing of such transaction. Forward-looking information is not a guarantee of future action or performance and involves a number of risks and uncertainties. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under 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.
Sustainable Energy Technologies Ltd.
Chairman & CEO
(403) 508-7177 #111