Mr. Ted Konyi reports

SMARTCOOL CLOSES TOTAL ENERGY CONCEPTS ACQUISITION

Smartcool Systems Inc. has received final TSX Venture Exchange approval and final documents, and has closed the acquisition of Total Energy Concepts Inc., which was originally announced on March 13, 2018, and amended on June 19, 2018.

"This closing marks a growth catalyst for Smartcool and allows us to continue rapid revenue growth with an expanded product offering. As temperatures and energy costs rise, our products will become even more critical," said Ted Konyi, chief executive officer of Smartcool Systems. "The synergies from this acquisition create significant worldwide revenue opportunities."

This acquisition marks a significant expansion of Smartcool's suite of energy efficiency products and the launch of its new strategic energy efficiency solutions offerings in Europe, the Middle East, North America and the Caribbean.

Minnesota-based Total Energy Concepts has been in business since 2003. Damian Smith, president and chief executive officer of Total Energy Concepts, has successfully grown the company and developed proprietary products used by over 10,000 client groups, such as McDonalds, Archdiocese of Chicago, Berge Auto Group, and schools and municipalities throughout the Midwest.

These include power factor correction equipment (PFC), voltage conditioning units (VCU) and intelligent generator optimization systems (IGOS). In addition to these proprietary products, Total Energy Concepts markets a host of energy efficiency products to provide clients a holistic approach to energy savings in an effort to help clients reduce energy consumption and save money.

As previously announced, Total Energy Concepts' financial statements for the year ended Dec. 31, 2017, show revenues of $2,012,278 (U.S.) ($2,656,207 (Canadian)). The parties have agreed to fix an effective date for closing of April 1, 2018, and revenues to Smartcool will be reported accordingly from that date.

Smartcool will acquire 100 per cent of the outstanding shares of Total Energy Concepts in return for 18 million common shares of Smartcool and five million non-transferable share purchase warrants to be issued to Damian Smith at closing, and $150,000 (U.S.) in cash payable over 12 months from the closing date. Each warrant will entitle Mr. Smith to purchase one additional Smartcool common share at the closing price until the fifth anniversary of the closing date.

About Smartcool Systems Inc.

Smartcool provides cutting-edge, energy-efficient and energy-cost-reduction solutions for businesses around the world. The ECO3, ESM and ECOHome are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by up to 40 per cent.

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