Sustainable Energy to launch USD-1.6m units offering

Aug 9, 2013 - Canadian firm Sustainable Energy Technologies Ltd (CVE:STG) said Thursday it planned to issue five-year royalty debenture units, seeking CAD 1.56 million (USD 1.5m/EUR 1.1m) in gross proceeds.

The solar inverter maker intends to use the proceeds to pay down short-term debt and for working capital needs. In addition, the funding will go to support the sales of the company's "bi-direx" energy storage inverter to global smart grid and micro-grid markets.

As part of the placement, Sustainable Energy will sell 89 debenture units. Each unit comprises one USD-20,000 five-year secured royalty debenture and either 8,000 common shares or 16,000 common share warrants exercisable for a four-year period at CAD 0.50 apiece. Each debenture bears an annual interest rate of 3%, plus 2/100 of 1% of Sustainable Energy's revenues. Sustainable Energy will issue a total of 424,000 common shares and 576,000 warrants under the private sale, it said. The management of the firm has subscribed for about 13% of the debenture units.

The offering is pending clearance from the Toronto venture stock exchange. Additional units might be also issued on the same terms of the transaction.

The debentures, common shares and warrants will be subject to a four-month lock-up period until December 8.

(CAD 1.0 = USD 0.968/EUR 0.724)

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