Alkaline Fuel Cell Power Corp., a diversified investment platform developing affordable, renewable, and reliable energy assets and cleantech, is pleased to announce a convertible note (the “Convertible Note”) financing in an aggregate amount of up to C$1 million (the “Financing”).
“As per our 2023 Priorities, securing additional access to cash is paramount to our success. This additional $1m convertible note financing coupled with our access to our $4m in convertible debt note financing announced on November 18, 2022, builds our capacity to support upcoming CHP projects, acquisitions, fuel cell business and working capital,” stated Frank Carnevale, Chief Executive Officer. “We continue to be focused to achieve EBITDA-process over the coming 4-6 quarters.”
The Convertible Note will allow the Company to access up to C$1,000,000 on an aggregate basis and can be drawn on at the request of the Company. The Convertible Note will mature 36 months (the “Maturity Date”) following the closing of the Financing (the “Closing”). Outstanding amounts under the Convertible Note will be convertible at the option of the holders (the “Holders”) into common shares in the capital of the Company (the “Common Shares”), subject to the policies of the Neo Exchange Inc. (the “NEO”) at a conversion price equal to the closing price of the Common Shares on the NEO the day prior to the date of conversion, as adjusted pursuant to the terms of the Convertible Note, at any time prior to the Maturity Date, subject to the terms of the Convertible Note. The Convertible Note bears an interest of 10% per annum which will be applied to all outstanding amounts drawn under the Convertible Note. In consideration for entering into the Financing, the Company will also issue 2,000,000 Common Share to the Holder.
It is expected that any funds drawn under the Convertible Note, will be used for general corporate and administrative purposes.
All securities issued in connection with the Financing (collectively, the "Securities”) are subject to a four-month and one day hold period in accordance with applicable Canadian securities laws, during which time the securities may not be traded. All Securities will be or are expected to be issued pursuant to Section 2.3 (Accredited Investor) of National Instrument 45-106 – Prospectus Exemptions.
Convertible Debt Financing
On November 18, 2022, PWWR announced the closing of a convertible note financing in an aggregate amount C$4,000,000. PWWR has yet to utilize any of the amount.
