TORONTO, ONTARIO–(Marketwired – Feb. 23, 2016) – UGE International Ltd. (the Business or UGE) (www.ugei.com) (TSX VENTURE: UG)(OTCQB: UGEIF), an international leader in distributed sustainablerenewable resource solutions, is delighted to reveal it has taken actions to additional strengthen its balance sheet through clear financial obligation repayment and forfeit transactions.
UGEs debt reduction was performed through 3 deals. #xA 0; 2 associated celebration loans to UGE from Chairman Ms. Xiangrong Xie were minimized through payment of 6,846,216 RMB ($1,054,286 USD) and through financial obligation forfeit of 1,830,148 RMB ($281,834 USD). #xA 0; Concurrently, and to contain UGE with greater industrial flexibility, $715,000 USD was advanced by another related celebration as a loan to the Companys US subsidiary. #xA 0; The loan does not bear interest and is due on January 1, 2018. #xA 0; The net reduction in debt through the 3 transactions was around $621,120 USD. #xA 0; This is in addition to the financial obligation to equity conversion announced February 8, 2016 and verified as finalized listed below, which decreased the Companys debt obligation by $500,000 USD.
Because the quarter ended September 30, 2015, the Business has actually reduced associated celebration debt by roughly $1,146,783 USD, a considerable action in its objectives to decrease debt levels and reinforce its balance sheet.
With these transactions complete, we have a cleaner, more powerful balance sheet for the year ahead, mentioned Nick Blitterswyk, CEO of UGE. #xA 0; We value the support and versatility our co-founders have actually offered to our continued growth in the commercial solar sector.
Shares for Debt Issuance
The Business has actually issued 1,240,907 typical shares to a related party in settlement of a debt in the quantity of CAD$ 694,908 ($500,000 USD), as previously revealed by news release on February 8, 2016 (the Shares for Financial obligation Transaction). #xA 0; The shares provided pursuant to the Shares for Financial obligation Deal are subject to a hold duration of 4 months and a day from the date of issuance, with such hold period expiring on June 23, 2016.
Application of Multilateral Instrument 61-101 (61-101)
The abovementioned deals are relatedbelong party transactions within the significance of 61-101 and of TSX Endeavor Exchange Policy 5.9. #xA 0; The Business intends to count on the exemptions from the formal appraisal and minority approval requirements of 61 #x 2010; 101 contained in sections 5.5(b) and 5.7(1)(a) and (b) of MI 61 #x 2010; 101 in regard of relevant party participation. The securities of the Company are noted on the TSX Endeavor Exchange and the OTCQB Market in the US, and at the time that the transactions were concurredconsented to, neither the reasonable market value of the subject of, nor the fair market value of the factor to consider for, the transactions, goes beyond 25 % of the Companys market capitalization, and the reasonable market value of the Shares for Debt Transaction does not exceed $2,500,000.
Letter of Credit
In addition, the Business announces that it has secured the letter of credit needed pursuant to the changed share purchase arrangement for the acquisition of Endura Energy, as previously announced on February 8, 2016.
UGE provides immediate savings to companies through cleaner electrical power. We help commercial and commercial customers end up being more competitive through the low cost of dispersed sustainable energy. With over 300 MW of experience worldwide, we work daily to power a more sustainable world. Visit us at www.ugei.com.
Neither TSX Endeavor Exchange nor its Policy Services Supplier (as that term is defined in the policies of the TSX Endeavor Exchange) accepts obligation for the adequacy or accuracy of this release.
Statements made in this news release include forward-looking statements that include a variety of risks and uncertainties. These statements relate to future occasions or future performance and reflect managements current expectations and presumptions. A variety of factors might cause actual occasions, performance or leads to differ materially from the occasions, performance and results talked about in the forward-looking statements, such as the economy, generally, competitors in its target markets, the need for UGEs products and the availability of funding. These positive statements are made since the date hereof and UGE does not assume any obligation to update or revise them to reflect new occasions or situations. Real occasions or outcomes might differ materially from UGEs expectations and projections.