Mr. Michael Carten reports
SUSTAINABLE ENERGY RENEWS OPERATING LINE WITH STANDBY EQUITY COMMITMENT
Sustainable Energy Technologies Ltd. has renewed its existing operating line commitment for up to $1.5-million from a Canadian chartered bank.
Doughty Hanson has agreed to extend its previously announced $1.5-million standby equity commitment to May 1, 2013, as additional security for the operating line subject to specified conditions. The operating line provides liquidity to the company as it ramps production to meet customer demand over the next quarter.
Based on current customer forecasts, the company anticipates production volumes increasing to just under three megawatts per month during the third calendar quarter of 2012. Current-customer-demand pipelines continue to grow, and the company expects production to increase to an average of four megawatts per month in the last calendar quarter driving further growth through 2013.
The operating line commitment by Doughty Hanson is in addition to a previously announced equity commitment for $1.5-million, of which $1.0-million has been invested, which remains in place. The company does not expect to call on the remaining equity commitment.
As consideration for the extension, the company will issue common share purchase warrants in respect of 12 million shares to Doughty Hanson. An aggregate of 4,848,484 warrants previously issued to Doughty Hanson in connection with the previously announced equity commitment expired unexercised. The new warrants are exercisable for a period of one year at five cents per share if the common shareholders approve a consolidation of the common shares within the next 180 days, with the warrants being subject to the consolidation, or at 10 cents per share if the consolidation is not approved.
We seek Safe Harbor.
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