CALGARY, ALBERTA--(Marketwire - June 29, 2012) - Sustainable Energy Technology Ltd. (TSX VENTURE:STG) ("Sustainable Energy" or the "Company") announced today that it has issued $800,000 in 5-year subordinated debentures ("Debentures") to a group of private investors, including existing shareholders and members of its management team. In total management acquired approximately 15% of the issue.
The additional funding enables the Company to accelerate the introduction of its 3rd generation PARALEX™ platform and provides additional working capital to increase flexibility in the management of its supply chain.
"In addition to cost reduction, Sustainable Energy will commercialize an application agnostic electronics/firmware module which allows the Company to execute on a longer term OEM strategy where the Company supplies the electronics and firmware to multiple customers for integration into their own product applications", commented Michael Carten, CEO of Sustainable Energy. "The capital infusion enables us to move forward on our cost reduction plan to generate higher margins, reduce our breakeven point and take the Company to profitability sooner."
The Debenture is being issued at an original issue discount of 12.5% to net the Company $700,000 and bears interest at a rate of 3% per annum, plus an amount equal to 8/10 of 1% of the consolidated revenues realized by the Company. Interest is payable quarterly in arrears. The Debenture is callable by the Company at par at any time after the second anniversary of issue. Purchasers of the Debentures will also be issued a total of 2.8 million restricted common shares of the Company which will be released on a Quarterly basis over the 2 year period following Closing. The shares will be subject to a 4 month hold which expires on October 30, 2012.
About Sustainable Energy:
Sustainable Energy (www.SustainableEnergy.com) is a Canadian solar inverter company which supplies Canada, the U.S. and Europe. The Company's patented inverter technologies are a breakthrough in power inverter design and capabilities for all forms of distributed generation and smart grid applications. The PARALEX™ inverter is the industry's only grid-interactive solar inverter which enables a "parallel" solar PV system architecture in higher power ratings at a cost and serviceability factor that is comparable to conventional inverters in the market. Sustainable Energy's technologies are the subject of multiple patents issued by and pending with the Canadian and US Patent Offices.
Forward Looking Information
The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, we include: statements concerning the impact of our technology on solar PV system performance and design flexibility; statements concerning the cost effectiveness of our product and statements concerning the Company's future profitability. Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties.
Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof.
Readers are also directed to the Risk Factors section of the Company's current Annual Information Form which may be found on its website or at www.sedar.com The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
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 or accuracy of this release.