EnerDynamic Hybrid Technologies (TSXV: EHT) this morning had a brief corporate update as it pertains to the acquisition of Windular Research and Technologies. The purchase, as well as a number of associated corporate actions, has now formally received approval from the TSX Venture.
First and foremost, the previously announced settlement of $14.2 million in principal debt has been approved by the exchange. The debt was settled via the issuance of 20.3 million common shares of the issuer, while the company will work with remaining debt holders to remove the final bits of debt from the firms balance sheet.
In an effort to further clean up the balance sheet, the firm also intends to conduct the bankruptcy process on one of its subsidiaries, EnerDynamic Hybrid Technologies Inc, which is expected to further reduce liabilities by roughly $12.0 million. The subsidiary reportedly has not conducted business for years and as a result is simply a liability for the firm, which the bankruptcy process is expected to help resolve.
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To assist the firm with its go-forward plan, non-brokered funds of $3.6 million raised by the company have been closed in escrow. Funds are to assist the company with proceeding with shovel-ready projects.
Finally, the company has received approval from the exchange to close upon the acquisition of Windular. Combined with the firms current assets, the transaction is expected to create a diversified solar and wind powerhouse.
“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
Following this approval, the company has requested for the resumption of trading of its equity.
EnerDynamic Hybrid Tech currently remains halted on the TSX Venture.
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