Welland, Ontario–(Newsfile Corp. – October 5, 2018) – EnerDynamic Hybrid Technologies Corp. (TSXV: EHT) (“EHT“) is pleased to provide an update on several ongoing business activities.
The Company continues to progress with the move of both its corporate and manufacturing operations, which remains on schedule, on budget and very near completion. The new facility, located in Niagara Falls, Ontario, provides significant improvement in the work environment, more effective production capacity, opportunities for consolidation of work flows and long-term production stability.
The negotiation concerning the closing of the Reliant sale continues to move forward as the parties seek to reach agreement on the final costs and sale price. The date of conclusion is expected to be in the near term with further updates to be provided as events warrant.
EHT Management is enroute to Africa to assess the readiness of site infrastructure in Burkina Faso prior to commencing shipment of model home units associated with the order for ENERTEC units announced on July 19, 2018. Fabrication is expected to increase, as previously indicated, over this fall period as the production capacity comes back on line following the relocation and redesign noted above. In Ivory Coast, management will be doing similar site inspections to determine a timeframe to commence order processing. Finally, in Ghana, management is meeting with government representatives to set a final timeline and details related to the contract announced September 10, 2018.
The Company currently holds order deposits on projects in Ghana and Puerto Rico and expects to receive similar deposits, consistent with Company policy, related to the Burkina Faso, Ivory Coast and Arizona projects in this quarter and the first quarter of fiscal 2019.
John Gamble, CEO of EHT, commented that, “For an organization of our size, moving the entire operation has been a challenge. We have virtually completed the move and have realized benefit by utilizing the opportunity to assess every process/workflow and made changes where advantageous to do so.” Mr. Gamble further commented that, “This trip to Africa is born out of experience; we wish to see first hand that all is ready to commence filling various orders. We need sites that have a poured concrete pads and water/sewer hookups in order to install our ENERTEC homes properly.”
Dan Amadori, one of the Company’s three outside directors, has resigned. Mr. Amadori has indicated he is unable to commit the time necessary to continue as an EHT director given his other personal and professional demands but remains available to assist the Board as may be required from time to time. Mr. Amadori has provided insight and material contribution to the Board during his tenure and the Board wishes to thank him for those his contributions.
The Company is also pleased to announce that it has completed a non-brokered private placement of $749,440.50, which was conditionally accepted by the TSX Venture Exchange on September 13, 2018. The private placement, which closed on October 5, 2018, is comprised of 14,988,810 units at a price of $0.05 per unit. Each unit consists of one common share and one common share purchase warrant, with each whole warrant being exercisable for one common share of the Company at a price of $0.075 per share for a term of 60 months (the “Offering”). No finder’s fee was paid in connection with this placement.
Proceeds from the private placement will be used for general working capital purposes. Pursuant to applicable securities laws, all securities issued under the Offering are subject to a four month and a day hold period from the date of issuance.
EHT delivers proprietary, turn-key energy solutions which are intelligent, bankable and sustainable. EHT’s expertise includes the development of its ENERTEC module structures with full integration of smart energy solutions. Using a proprietary skin and foam core that is stronger than traditional wood or steel structural insulated panels, EHT provides exceptional thermal energy efficiency in modular homes, cold storage facilities, residential/commercial out buildings and emergency/temporary shelters. EHT works with its partners worldwide to erect the buildings on-site utilizing EHT staff and local crews. In addition to traditional support to established electrical networks, ENERTEC buildings excel where no electrical grid exists.
The EHT advanced ENERTEC Modular Wall and Roof System uses a proprietary skin and foam core that is stronger and more energy efficient than traditional wood or steel structures providing the highest ratings for energy efficiency. EHT works with its partners worldwide to erect the buildings on-site utilizing EHT staff and local crews. After installation, each structure can be furnished and finished to meet the customer’s requirements including siding, tile, kitchens and bathrooms or segregated commercial rooms. The finished wall product can be shipped on pallets and delivered via rail, truck or water in standard formats.
At the core of the ENERTEC product line is the ENERTEC Embedded Solar Roof Module. Solar cells can be embedded in a proprietary fire proof skin resulting in substantial cost savings by eliminating heavy glass panels and aluminum racking required for traditional solar panels. Two barriers to greater adoption of solar energy are weight limitations of the roof on which solar panels could be deployed and onerous shipping and labour costs. A lighter product at a better price point will open a larger market for solar due to the faster return of capital investment especially for rural and remote users looking to go off-grid. Furthermore, the entire EHT embedded solar roof becomes a massive solar panel capable of producing significantly more energy than the home requires, allowing the structure to then become an important source of power for the local micro grid or large battery storage systems.
This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither 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.
The statements herein that are not historical facts are forward-looking statements. Forward-looking information relating to sales of the products (the “Opportunities”) involves risk, uncertainties and other factors that could cause actual events, results, performance, prospects, for the Opportunities to differ materially from those expressed or implied by such forward-looking information. Although EHT believes that the assumptions used in preparing the forward-looking information on the Opportunities outlined in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. EHT disclaims any intention or obligation to update or revise any forward-looking information, whether a result of new information, future events or otherwise, other than as required by applicable securities laws.
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