EEStor Corporation
TSX VENTURE : ESU

EEStor Corporation

December 14, 2015 10:23 ET

EEStor Corporation Announces Proposed Private Placement and Note and Warrant Issue

TORONTO, ONTARIO--(Marketwired - Dec. 14, 2015) -

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EEStor Corporation (TSX VENTURE:ESU)("EEStor" or the "Company") announced today plans to raise up to Cdn$3.0 million in a non-brokered private placement. EEstor is proposing to offer up to 20,000,000 units at a price of Cdn$0.15 per unit, with each unit consisting of one common share and one common share purchase warrant. Each share purchase warrant will entitle the holder to acquire one additional common share at a price of Cdn$0.30 for a period of 36 months from the closing date of the offering. The size of the offering may be increased if demand is sufficient. The private placement is subject to all necessary regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the private placement will be subject to a 4-month hold period in Canada and may be subject to further hold periods in other jurisdictions where they are sold.

The Company has received expressions of interest from lead investors for Cdn$1,175,000 of the units offered. In connection with the offering it is intended that, subject to regulatory approval, Michael Michalyshyn would join the Board of Directors of the Company following the completion of the offering. Mr. Michalyshyn has a strong background in Intellectual Property law and recently served as General Counsel & VP Human Resources at QNX Software Systems and continued on after the acquisition of the company by BlackBerry Limited to become the head of BlackBerry's Technology Licensing group. Currently, Mr. Michalyshyn is the General Counsel & Corporate Secretary at TSX-listed ViXS Systems Inc. based in Toronto. Mr. Michalyshyn stated, "Having reviewed the Company's intellectual property portfolio, I believe my licensing and patent background should be of assistance to the Company in considering licensing opportunities and continuing to strengthen its portfolio. This is especially the case as the Company moves into higher energy density applications and ultimately seeks to license that intellectual property as well". Mr. Michalyshyn added, "I am excited to assist EEStor in the expected commercialization of their technology over the coming months and years".

EEStor Corporation proposes to pay a finder's fee to qualified parties that introduce subscribers for units that are accepted, of up to 8% of the subscription price, payable in cash, plus up to 8% finder's warrants having the same terms as the warrants issued to subscribers under the offering.

Ian Clifford, CEO and Founder of EEStor, stated "This financing, if completed, will allow the Company to strengthen its balance sheet as discussions are ongoing with potential joint venture partners for the high voltage capacitor technology being developed at EEStor". Mr. Clifford also added, "The Company has commenced an advanced polymer program to further its existing high voltage capacitor technology into higher energy density applications. It is also timely for the Company to undertake this electrical energy storage work in the days and months following an historic global initiative signed in Paris to end fossil fuel dependency and dramatically reduce carbon emissions." EEStor plans to use a portion of the proceeds to support its advanced polymer development program. EEStor will keep investors informed of progress in the polymer program and joint venture discussions over the next several months. The Company will use the balance of the net proceeds from the offering for working capital and general corporate purposes.

The Company also announced that, subject to regulatory approval, including the approval of the TSX Venture Exchange, it is proposing to issue an aggregate of Cdn$647,000 of unsecured notes (the "Notes") for advances made to the Company by Garry Fairhurst, Martin Frenette, Brian Kirk, Mark Rider and Robert Tocchio, each of whom are parties at arm's length to the Company (collectively, the "Lenders"). The Notes will bear interest at the rate of 6% per annum and will mature 36 months from the date of issue. An aggregate of 4,313,333 non-transferable warrants will be issued to the Lenders as a bonus for the loans made, with each share purchase warrant entitling the holder to acquire one common share of the Company at a price of Cdn$0.15 for a period of 36 months from the date of issue of the Notes. In the event that any of the Notes are repaid within the first 12 months of the date of issue, the expiry date of a pro rata portion of the warrants will accelerate to a date that is the later of one year from the date of issue of the Notes and 30 days from the early repayment date.

About EEStor Corporation

The Company's mission is to be the provider of leading edge electrical energy storage and related capacitor technologies. The Company operates on the principle and belief that a fundamental breakthrough in energy storage will be the catalyst for positive environmental and economic change globally. The Company's current business strategy is focused on licensing and partnership opportunities across a broad spectrum of industries and applications building on its recent technology achievements related to capacitors.

The Company holds an approximate 71.3% as-converted equity and voting interest and certain technology rights to a solid-state capacitor and related energy storage technologies currently under development by EEStor, Inc. The acquisition of the controlling interest in EEStor Inc. aligned the businesses of both companies and now allows EEStor Corporation to benefit from other revenue streams that should be available to EEStor, Inc., including applications throughout the capacitor industry and not limited to high density energy storage applications.

The Company's success depends on the commercialization of the technology developed by EEStor Inc and there is no assurance that it will be successful in the completion of the various enhancement phases to warrant the anticipated licensing opportunities in the technology. Readers are directed to the "Risk Factors" disclosed in the Company's AIF.

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.

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