Science & Technology
Science and Technology
Science and Technology
Wed, October 19, 2011
Doughty Hanson Commits Additional $1.5 Million in Equity for Sustainable Energy
October 19, 2011 15:35 ET
Sustainable Energy Technologies Ltd.: Doughty Hanson Commits Additional $1.5 Million in Equity for Sustainable Energy
TORONTO, ONTARIO--(Marketwire - Oct. 19, 2011) - Sustainable Energy Technologies Ltd. (TSX VENTURE:STG) ("Sustainable Energy") announced today that Doughty Hanson Technology Ventures ("Doughty Hanson") has committed to provide up to $1.5 million in new equity (the "Equity Commitment") as needed to meet working capital needs and to fund a potential European initiative currently under negotiation.
The equity will be provided by the purchase of First Preferred Shares ("Series 11 Shares"), which are redeemable at the option of the Company if the common shares trade at a price of $0.60 per share for more than 30 days and will be convertible into Common Shares of Sustainable Energy at a price that is equal to the market price determined at the time of the notice of each drawdown by the Company. The Series 11 Shares are similar to, and rank pari passu with other First Preferred Shares of the Company that are currently outstanding.
The Equity Commitment is intended to provide short term working capital as needed and the equity support needed by the Company to secure an initiative currently in negotiation in Europe. The Equity Commitment is irrevocable as to the first $1.0 million with the balance subject to Doughty Hanson being satisfied on certain financial and performance benchmarks.
Sustainable Energy will draw $500,000 in exchange for 50,000 Series 11 Shares convertible into Common Shares at $0.115 per share on Closing for gross proceeds of $500,000. The conversion price of subsequent draw-downs under the Equity Commitment will be priced in the context of the market at the time of the draw down. Prior to this transaction, Doughty Hanson held a net 23.1% interest in the fully diluted common share capital of Sustainable Energy.
Subject to regulatory approval, Doughty Hanson will receive 6,347,826 Warrants to acquire Common Shares of the Corporation exercisable at $0.115 per share for a period of one year from the date of Closing of the Agreement, as compensation for underwriting the Equity Commitment.
About Doughty Hanson: Doughty Hanson ([ www.doughtyhanson.com ]) is one of Europe's most successful independent private equity firms. Since 1985, Doughty Hanson has undertaken more than 118 investments with an aggregate acquisition value in excess of €28 billion. Doughty Hanson employs over 50 investment professionals of 15 nationalities, located in offices in London, San Francisco, Frankfurt, Madrid, Milan, Munich, Paris and Stockholm.
About Sustainable Energy:
Sustainable Energy ([ www.SustainableEnergy.com ]) is a Canadian solar inverter company which supplies Canada, the U.S. and Europe. The Company's patented inverter technologies are a breakthrough in power inverter design and capabilities for all forms of distributed generation and smart grid applications. The PARALEX inverter is the industry's only grid-interactive solar inverter which enables a "parallel" solar PV system architecture in higher power ratings at a cost and serviceability factor that is comparable to conventional inverters in the market.
The benefits of "parallel solar" are: (i) 5% - 25% higher total system power output; (ii) better coverage of available space; (iii) a simplified system design and installation; and (iv) the safety of extra low operating voltages which ensures the safety of building maintenance personnel, first responders, and tradesmen who may accidentally come into contact with system wiring. Sustainable Energy's technologies are the subject of multiple patents issued by and pending with the US Patent Offices.
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: statements concerning the impact of our technology on solar PV system performance; and statements concerning demand for products; Forward-looking information is not a guarantee of future 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.
Readers are also directed to the Risk Factors section of the Company's current Annual Information Form which may be found on its website or at [ www.sedar.com ] 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.
