MONTRÉAL, QUÉBEC–(Marketwired – May 19, 2016) – Orbite Technologies Inc. (TSX:ORT)(OTCQX:EORBF) (“Orbite” or the “Company”) following its press release of April 27, 2016, announced the closing of an equity financing in the amount of $5 million with Ressources Québec inc. (“Ressources Québec”), a subsidiary of Investissement Québec, acting as agent of the Government of Québec.
As part of the financing, Ressources Québec purchased 20,746,888 Class A shares of Orbite at a price of $0.241 per share.
“With this equity investment and the $1 million raised from US investors on May 6, the Company has raised a total of $6 million in equity and is on track to finalize the funding required for completion of our HPA facility,” stated Glenn Kelly, CEO of Orbite. “We anticpate closing the $5 million convertible debenture in the coming weeks, after which we will award the contracts for the remainder of the construction and implement our plan towards start-up and commencement of commercial production. We are very grateful for the continued support from Ressources Québec, who has proven to be a stable and supportive partner.”
As part of the financing, the Company amended the terms of the 17,857,143 warrants issued to Ressources Québec in May 2014, which warrants are now exercisable into shares of the Company at a price of $0.241 per share (instead of $0.33) and will expire on May 2, 2019 (instead of May 27, 2017).
The shares issued under the financing are subject to a mandatory hold period of 4 months after the closing date. The net proceeds of the financing will be used to complete the construction of the production plant of high purity alumina located in Cap-Chat, Québec.
About Orbite
Orbite Technologies Inc. is a Canadian cleantech company whose innovative and proprietary processes are expected to produce alumina and other high-value products, such as rare earth and rare metal oxides, at one of the lowest costs in the industry, and in a sustainable fashion, using feedstocks that include aluminous clay, kaolin, nepheline, bauxite, red mud, fly ash as well as serpentine residues from chrysotile processing sites. Orbite is currently in the process of commercializing its first HPA Plant in Cap-Chat. The Company’s portfolio contains 16 intellectual property families, including 32 patents and 101 pending patent applications in 11 different countries and regions. The first intellectual property family is patented in Canada, USA, Australia, China, Japan and Russia. The Company also operates a state of the art technology development center in Laval, Québec, where its technologies are developed and validated.
Forward-looking statements
Certain information contained in this document may include “forward-looking information”. Without limiting the foregoing, the information and any forward-looking information may include statements regarding projects, costs, objectives and future returns of the Company or hypotheses underlying these items. In this document, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management’s good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company’s control. These risks uncertainties and assumptions include, but are not limited to, those described in the section of the Management’s Discussion and Analysis (MD&A) entitled “Risk and Uncertainties” as filed on March 30, 2016 on SEDAR, including those under the headings “Recent increase in budgeted capital costs will require additional financing and may adversely impact our prospects”, “We will need to raise capital to continue our growth” and “Development Goals and Time Frames”.
The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.
Marc Lakmaaker
External Investor Relations Consultant
416-848-1397
[email protected]
For Media Inquiries:
NATIONAL Equicom
Scott Anderson
External Media Relations Consultant
416-586-1954
[email protected]
