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TORONTO, Sept. 08, 2022 (GLOBE NEWSWIRE) — CHAR Technologies Ltd. (“CHAR Technologies” or the “Company”) (TSX Venture Exchange: YES) is pleased to announce the closing of a short term unsecured debt financing of $625,000 (the “Financing”). The majority of financing ($375,000) was provided by Company insiders and the remainder ($250,000) was provided by existing shareholders. The debt has an interest rate of 1% per month and a term of five months. At the Company’s option, the debt may be prepaid without penalty from the date which falls one month after the closing date.
CHAR Technologies intends to use the net proceeds from the financing to advance the development of contracted and earlier-stage projects and for general working capital purposes. The Company is seeking additional funding for the development of various projects and expects it will soon receive funding and funding commitments for a portion of the costs of its planned demonstration facility (500,000 GJ) at Thorold. “We are at a very exciting time in our commercialization of our renewable energy technologies to produce both renewable natural gas (RNG) and biochar to provide solutions to Canadian strategic industries,” said Andrew White, CEO . “This small financing will allow us to access other sources of funding as we develop our capital structure for our future expansion,” he added.
Funding was provided by existing shareholders and current and former directors, officers, partners and employees, some of whom are Company insiders. Such insider participation in the Funding constitutes a “related party transaction” within the meaning of National Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“NI 61-101”). However, such an interest is exempt from the formal valuation and minority shareholder approval requirements of NI 61-101 since neither the fair market value of the subject matter of the transaction nor the fair market value of the consideration for the transaction , to the extent it involves parts of the Company, exceeds 25% of the market capitalization of the Company. As required by NI 61-101, the Company advises that it will file a material change report with respect to the financing less than 21 days before the completion of the offering, which is reasonable in the circumstances, as this shorter period is necessary to complete the financing. expeditiously.
No commission or fees are payable in connection with the Financing. The closing of the Financing may be subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities authorities.
This press release does not constitute an offer to sell or a solicitation of an offer to buy, and there will be no sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the titles. laws of such jurisdiction.
About CHAR Technologies
CHAR Technologies Ltd. is a clean technology development and service company, specializing in the pyrolysis of organic waste and the development of biocarbon, tailor-made equipment for industrial air and water treatment, and providing management services environmental, site investigation and remediation, engineering, environmental compliance and resource efficiency.
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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 of this press release.
The statements in this press release contain “forward-looking information” within the meaning of Canadian securities laws (“forward-looking statements”) about CHAR, its business and operations. The words “may”, “would”, “will”, “intend”, “anticipate”, “expect” and similar expressions with respect to CHAR, are intended to identify forward-looking information. These statements reflect CHAR’s current beliefs and intentions regarding future events, as well as current information available to CHAR, and are subject to certain risks, uncertainties and assumptions, including the risk factors discussed or referred to in the CHAR information filed with the securities. regulatory authorities in certain provinces of Canada, including the MD&A dated January 31, 2022 and available under CHAR’s profile on www.sedar.com. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Further, CHAR assumes no responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release, and CHAR undertakes no obligation to publicly update or revise any forward-looking information, except as required by applicable law.