EnerDynamic Hybrid Technologies (TSXV: EHT) this morning provided a corporate update to shareholders, with the firm indicating that it continues to work towards cleaning up its balance sheet. The process is part of the firms acquisition of Windular Research and Technologies, the transaction of which has now conditionally closed pending the approval of the TSX Venture exchange.
As part of its acquisition of Windular, the company has undertaken a major clean-up of its operations. Primarily, the company is working towards the settlement of $21.6 million in outstanding debentures on its balance sheet, the holders of which have agreed in principal to convert the debt to shares of the company at a price of $0.70 per share.
Within the updated released by the company this morning, the firm revealed that a total of $14.2 million of the principal debt has been settled to date. Additional debt is slated to come off the firms books in the coming months, significantly cleaning up the firms balance sheet. Notably, the delay in settlement of the debt is to not impact the firms acquisition of Windular.
“This has been a long and arduous process for the companies and our valued investors new and old. We had a very good company before but now we have one of the leading renewable companies in the world with the addition of Windular. We have lots of exciting projects on the horizon and look forward to updating the market on a regular basis as customer orders are received.”
John Gamble, CEO
Additionally, the company has also closed in escrow a total of $3.6 million in new funds as part of the firms ongoing private placement. The offering consisted of subscription receipts, priced at $0.70 per each.
Finally, the company has conditionally closed on the acquisition of Windular Research and Technologies, with the final closing pending the approval of the TSX. Upon closing, the transaction is expected to create a solar and wind “powerhouse.”
EnerDynamic Hybrid Tech is currently halted for trading on the TSX Venture.
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