EHT Announces Closing of Its First Two Tranches of Convertible Notes Offering

TORONTO, ON / ACCESSWIRE / June 21, 2016 / Enerdynamic Hybrid Technologies Corp. (TSXV: EHT) (“EHT” or the “Company“) is pleased to announce that it has completed a private placement of 3,625 secured subordinated convertible notes (the “Notes“) of the Company at a price of $1,000.00 per Note for gross proceeds of $3,625,000.00 (the “Private Placement“). The Notes are payable on demand and have a maturity date of two years from issuance. Subject to shareholder approval or TSX Venture Exchange approval if a new Control Person will be created, the Notes are convertible at any time at the option of the holder or the Company into units (each a “Unit” and collectively “Units“) of the Company at a conversion price per Unit equal to the greater of (i) the market price of the common shares of the Company (“Common Share“) on the date of conversion; and (ii) $0.15. Each Unit is to consist of one Common Share and one common share purchase warrant (a “Warrant“) of the Company. Each Warrant will entitle the holder thereof, on exercise, to purchase one additional common share of the Company (a “Warrant Share“) at an exercise price of $0.30 per Warrant Share for a period of 5 years following the issuance of the Notes.

The Company closed its first tranche of the Private Placement on June 8, 2016 of which the Company issued 1,500 Notes of the Company for gross proceeds of $1,500,000 (the “First Tranche“). The Company closed its second tranche of the Private Placement on June 17, 2016 of which the Company issued 2,125 Notes of the Company for gross proceeds of $2,125,000 (the “Second Tranche“). The Company intends on closing a third tranche and final tranche of the Private Placement in the coming weeks of which the Company will issue up to 1,375 Notes of the Company for gross proceeds of up to $1,375,000 (the “Final Tranche“).

Kingsdale Capital Markets Inc. (“Kingsdale“) acted as agent under the Private Placement pursuant to an agency agreement with EHT. Kingsdale’s commission consisted of cash representing 7.5% of the gross proceeds of the brokered purchases of Notes, as well as consideration in the form of 1,450,000 agent warrants (“Agent Warrants“) issued by EHT. Each Agent Warrant is exercisable for one Unit at a price of $0.15 per Agent Warrant for a period of 24 months following the closing date.

The securities issued under the First Tranche are subject to a hold period expiring on October 9, 2016 and the securities issued under the Second Tranche are subject to a hold period expiring on October 18, 2016. The net proceeds from the sale of the Units will be used for working capital.

About EnerDynamic Hybrid Technologies

EHT delivers proprietary, turn-key energy solutions which are intelligent, bankable and sustainable. Most energy products and solutions can be implemented immediately wherever they are needed. EHT stands above its competitors by combining a full suite of solar PV, wind and battery storage solutions, which can deliver energy 24 hours per day in both small-scale and large-scale format. In addition to traditional support to established electrical networks, EHT excels where no electrical grid exists.

The organization supplies advanced solutions for various industries in combination with energy saving and energy generation solutions. EHT’s expertise includes the development of module structures with full integration of smart energy solutions. These are processed through EHT’s production technologies into attractive applications: modular homes, cold storage facilities, schools, residential and commercial out buildings and emergency/temporary shelters.

Neither 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.

The statements herein that are not historical facts are forward-looking statements. Forward-looking information involves risk, uncertainties and other factors that could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements regarding, among other things, the closing of the Final Tranche. Although EHT believes that the assumptions used in preparing the forward-looking information in this news release are reasonable, including that all necessary regulatory approvals will be obtained in a timely manner, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. EHT disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable securities laws.

FOR FURTHER INFORMATION PLEASE CONTACT:

John Gamble
Director
(289) 488-1699
jgamble@ehthybrid.com

Stephanie Thompson
Administrative Assistant
(289) 488-1699
info@ehthybrid.com

Company Website: www.ehthybrid.com

SOURCE: Enerdynamic Hybrid Technologies Corp.

ReleaseID: 441443