VANCOUVER, British Columbia, Nov. 27, 2018 (GLOBE NEWSWIRE) -- SHARC International Systems Inc. (CSE: SHRC) (FSE: IWIA) (OTCQB: INTWF) ("SHARC" or the “Company”) is pleased to announce that the Company has entered into loan agreements (collectively, the “Loan Agreements”) with certain lenders for a total loan of $1,300,000 (the “Loan”).
The Loan matures on December 23, 2018 and bears interest at an annual rate of 18%. The Loan is secured against all present and after acquired of the Company and International Wastewater Heat Exchange Systems Inc., a wholly-owned subsidiary of the Company.
The Loan will be used to pay eligible construction costs ahead of recovering grant support for the heat incentive scheme described below. The Company is eligible to receive grant funding up to a maximum of £1.684M.
This funding is for the Clyde Gateway project which is one of a number of projects the Company is undertaking in the United Kingdom that utilize government subsidies, low interest debt financing and strategic funding partners to build out Heat Supply Infrastructure for the purposes of supplying heat generated by our SHARC™ units. Once completed, the project(s) will generate reoccurring heat supply revenues to support the operating costs of the Energy Centres
The Clyde Gateway Project is estimated to complete and begin generating cash flow in late Q1 2019.
In consideration of the lenders entering into the Loan Agreements, the Company issued to the Lenders a total of 3,714,286 common share purchase warrants (the "Warrants"). Each Warrant entitles the holder thereof to acquire one common share of the Company at $0.35 per share for three years from the date of issuance. In the event that following four months and a day after the closing date, the volume weighted average trading price of the Company's common shares as quoted on the Canadian Securities Exchange (the “CSE”) exceeds $0.80 per share for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date of such notice.
The Warrants issued in connection to the Loan will be subject to a statutory hold period expiring four months and one day after the date of issuance. In addition, the Warrants are not exercisable if such exercise would result in the holder acquiring 10% or more of the issued and outstanding common shares of the Company.
About SHARC International Systems
SHARC International Systems Inc. is a world leader in thermal heat recovery. SHARC systems recycle thermal energy from wastewater, generating one of the most energy efficient and economical systems for heating, cooling & hot water preheating for commercial, residential and industrial buildings. SHARC is publicly traded in Canada (CSE: SHRC), the United States (OTCQB: INTWF) and Germany (Frankfurt: IWIA).
ON BEHALF OF THE BOARD
Chairman and Chief Executive Officer
For further information, please contact:
The Howard Group
Phone: (888) 221-0915 or (403) 221-0915
SHARC International Systems Inc.
Telephone: (604) 442-2425
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. SHARC's actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Company. SHARC believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.