Announces Second Closing Convertible Debenture Offering
Calgary, Alberta CANADA, July 13, 2012 /FSC/ - QSolar Limited (QSL - CNSX),("QSolar" or the "Corporation") is pleased to announce that effective today and pursuant to press releases announced February 28, 2012 and March 14, 2012, it has closed a second tranche of a "best efforts" basis, non-brokered convertible debenture private placement to raise gross proceeds for up to $3 million (the "Offering"). The second tranche of the convertible debenture private placement consisted of an aggregate principal amount of $90,000 for a total aggregate principal amount to date of $913,000 of 10% secured convertible debentures (the "Convertible Debentures") to arms-length subscribers.
Definitive but not all inclusive terms are that the Convertible Debentures are convertible into common shares of the Corporation at a price equal to $0.50 per common share. The Corporation may redeem all or any portion of the Convertible Debentures after one year from the date of issuance upon 30 days' notice to the holders, provided that such holders may exercise their conversion rights prior to the intended date of redemption. The Convertible Debentures bear interest at 10% per annum with interest payable quarterly in arrears from the date of issuance and mature two years from the closing date. The Corporation has granted a subordinated security interest to the purchasers of the Convertible Debentures and will have a general security interest over the assets of the Corporation. The net proceeds raised from the Offering is intended to be used to commence to manufacturing current purchase order backlog and future inventory purchases and general corporate purposes. A finder's fee of 8% cash and that number of warrants equal to 8% of the dollar value of the principal amount of the Convertible Debentures raised by the finder is payable to the finder such that one warrant is exercisable to acquire one common share at a price of $0.30 for a period of one year from the closing date.
QSolar trades under the symbol QSL on the Canadian National Stock Exchange ("CNSX").
About QSolar Limited
QSolar Limited and its wholly-owned subsidiary, QSolar Ltd., develop patented and proprietary solar related processes and technologies, and manufacture and sell their own proprietary solar products. The Corporation currently manufactures solar photovoltaic (PV) panels in its new manufacturing facilities in Shanghai, China using its proprietary patent pending Spraytek(r), Kruciwatt(r), QLite and ESS process and its own designs. QSolar products were initially introduced by QSolar in July 2010 and have attracted significant interest, orders and letters of intent from European and U.S. markets generated by its sales office in France and through its various sales representatives. QSolar Spraytek(r) panels offer several advantages over competing products as they have significantly lower losses in hot climates due to their design, offer superior solar cell encapsulation for better protection, longer life than equivalent solar products, and are now offered in various sizes and colors. In addition, QSolar offers solar panels with positive tolerance which means that the customer will get a guaranteed output which can be up to 5% more than the actual specifications.
Additional information on the operations or financial results of QSolar Limited and QSolar Ltd. are included in reports on file with applicable securities regulatory authorities and may be accessed through the CNSX website (www.cnsx.ca) and the SEDAR website (www.sedar.com) under the profile for QSolar.
FOR FURTHER INFORMATION PLEASE CONTACT:
Andreas Tapakoudes, Chief Executive Officer
Preston J. Maddin, CFO
The CNSX has neither approved nor disapproved the contents of this press release. The CNSX does not accept responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this report and the documents that we incorporate by reference, are forward-looking statements and can generally be identified by words such as "will," "allow," "outlook," or the negative of these terms, and other comparable terminology.
Various risks and other factors could cause actual results, and actual events that occur, to differ materially from those contemplated by the forward looking statements, such as whether QSolar Limited is able to meet price, performance, quality and delivery requirements. Although QSolar believes that the expectations represented by any forward-looking statements and forward-looking information contained herein are reasonable based on the information available to them on the date of this document, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements or forward-looking information. QSolar undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.
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Source: QSolar Limited (CNSX: QSL) http://www.qsolar.net
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