TORONTO, Feb. 25, 2019 (GLOBE NEWSWIRE) — Today, Clear Blue Technologies International Inc. (“Clear Blue” or the “Company”) (CBLU.V) is pleased to announce that it has completed an initial tranche (“Initial Tranche”) of a non-brokered private placement of units (each, a “Unit”) at a price of $0.25 per Unit, for gross proceeds of $1,008,000 (all amounts are in Canadian dollars).
Additionally, the Company has closed on a $1,150,000 operating line and credit facility provided by a Canadian Schedule I bank with the support of Export Development Canada (“EDC”) Clear Blue is also working to secure additional research and development (“R&D”) grant funding in 2019. The Company has previously been successful in obtaining R&D grants between $250,000 and $500,000 annually, and it is aiming to achieve a similar level of grant funding this year.
“The capital and grants should meet Clear Blue’s financing needs through the next phase of our growth trajectory,” says Miriam Tuerk, CEO and Co-Founder, Clear Blue. “The bank operating line with EDC’s support also helps provide working capital flexibility to deliver on larger orders which will add to the growth in revenue that we anticipate in 2019. In addition, a number of key existing customers are expecting to undertake significant growth this year. We believe this foundation will serve us well for 2019.”
“Supporting the growth of promising clean technology companies like Clear Blue is a priority for EDC,” says Carl Burlock, Senior Vice-President of Financing and International Growth Capital at EDC. “We offer solutions to help these businesses achieve new levels of success in the international marketplace. With Clear Blue we are providing financial solutions, knowledge, and international connections to support their global growth goals.”
The Company expects to complete additional tranches under the private placement for gross proceeds, together with the Initial Tranche, of up to $2,500,000 (the “Offering”) within the next few weeks. Under the terms of the Offering, each Unit will be comprised of one common share of the Company and one common share purchase warrant of the Company. Each warrant will be exercisable at a price of $0.50 per share for a period of 36 months following the closing. The warrants will be subject to accelerated expiration if the 10-day volume weighted average trading price of the Company’s common shares is, at any time, greater than $0.80 per share. The Offering is subject to final approval from the TSX Venture Exchange.
The Company will pay aggregate finder’s fees of $51,485 in cash and will issue 261,940 common share compensation options (the “Compensation Options”) to compensate finders who introduce purchasers in the Initial Tranche of the Offering. Each Compensation Option is exercisable to acquire one common share of the Company at an exercise price of $0.50 per common share for a period of 36 months from the date of issuance, and will be subject to accelerated expiration if the 10-day volume weighted average trading price of the Company’s common shares is, at any time, greater than $0.80 per share.
Lawrence Tjan, the Chief Financial Officer of the Company, subscribed for 100,000 Units under the Initial Tranche of the Offering for aggregate cash consideration of $25,000. The participation of Mr. Tjan in the Offering constitutes a related party transaction under the Canadian Multilateral Instrument 61-101 (“MI 61-101”), but is otherwise exempt from the formal valuation and minority approval requirements of MI 61-101.
The securities issued under the Offering will be subject to a four-month hold period in accordance with applicable securities legislation.
About Clear Blue Technologies International
Clear Blue Technologies International, the Smart Off-Grid™ company, was founded on a vision of delivering clean, managed, “wireless power” to meet the global need for reliable, low-cost, solar and hybrid power for lighting, telecom, security, Internet of Things devices, and other mission-critical systems. Today, Clear Blue has thousands of systems under management across 35 countries, including the U.S. and Canada.