Environmental Waste International Inc.
TSX VENTURE : EWS

Environmental Waste International Inc.

May 01, 2017 07:00 ET

Environmental Waste International Inc. Completes Financing Totaling $1,721,250

AJAX, ONTARIO--(Marketwired - May 1, 2017) - Environmental Waste International Inc. (TSX VENTURE:EWS) (the "Company" or "EWI"), a company specializing in eco-friendly systems with proven patented technology for the breakdown of organic materials, today announced that it has closed a financing in escrow, raising proceeds of $1,721,250, subject to final approval of the TSX Venture Exchange.

The Company issued 3,712,500 common shares to a single subscriber, EWI Investors LLC, (the "Subscriber") at an issue price of $0.10 per common share. The Company also issued a 10-year 5% unsecured convertible note to the Subscriber in the principal amount of $1,350,000 (the "Note"). The Note is convertible at a conversion price of $0.11 per common share. Accrued interest under the Note is required to be paid annually and, for the first five years, may be payable in common shares of the Company, provided that each interest payment in shares is approved by the TSX Venture Exchange. The common shares and the Note issued in connection with this financing and the common shares issuable upon the conversion of the Note are subject to a four month and one day hold period. Any shares issued in connection with the payment of interest will be subject a four month and one day hold period from the date of issue.

Immediately prior to the completion of the financing, the Subscriber held 5,000,000 common shares of EWI, representing approximately 3.2% of the outstanding common shares of the Corporation. After completion of this financing, the Subscriber will hold 8,712,500 common shares, representing approximately 5.3% of the Company's outstanding common shares. Assuming full conversion of the Note, the Subscriber would hold 20,985,227 common shares, representing approximately 12.0% of the Company's outstanding common shares. The securities were acquired by the Subscriber for investment purposes. The Subscriber may from time to time acquire additional shares or other securities of the Company, dispose of some or all of the existing or additional securities of the Company, or continue to hold common shares or other securities in the normal course of its investment activities. Robert Savage, a director of the Company, is an insider of the Subscriber. An early warning report relating to the securities purchased by the Subscriber will be available on www.sedar.com under the Corporation's profile.

The Company also announced today that it has converted $186,191 of debt into common shares. Of this debt, $107,201 was owing to certain directors of the Company and was converted at $0.10 per common share for a total of 1,072,010 common shares. $50,500 of the converted debt was owing to an arm's length party and was converted at $0.10 per common share for a total of 505,000 common shares. The remaining $28,490 represents interest owing with respect to a $500,000 convertible loan provided by Collectors' Fund LP., which recently elected to convert the loan into common shares at a conversion price of $0.10. The TSX Venture Exchange has approved payment of the interest owing in common shares at $0.10 per common share. A total of 5,284,900 common shares were issued to Collector's Fund L.P. in respect of the conversion of its loan and the payment of interest.

EWI would like to update its disclosure record and provide additional information related to previous press releases.

On December 1, 2015, the Company issued a press release that 94,500 warrants with an exercise price of $0.10 were to be issued to holders of a second mortgage over the Company's property in Sault Ste. Marie. The Company also issued a press release on March 14, 2016 that the Company would issue 63,600 warrants to those same holders. None of these warrants were ever issued and the debt secured by the second mortgage has now been repaid.

Between the period of April, 2015 and March, 2017, the Company agreed to issue 2,282,238 common shares and received aggregate subscription proceeds of $239,133. $40,000 of proceeds relating to 381,818 common shares agreed to were received prior to September 30, 2016 and were included in Subscriptions Payable in the Company's interim financial statements for the period ended September 30, 2016. The Company did not issue the 2,282,238 shares from treasury or obtain TSX Venture Exchange approval for the issuance of such shares. These shares have now been issued and the Company has received approval from the TSX Venture Exchange. During this period, the Company also agreed to issue 160,000 warrants to one of the purchasers of shares noted above. Each warrant is exercisable into one common share of the company at an exercise price of $0.10 until November 12, 2017. The TSX Venture Exchange has provided approval for the issue of these warrants.

About Environmental Waste International Inc.

Environmental Waste International, Inc. specializes in eco-friendly systems for the breakdown of organic materials, including tires. EWS has spent over 15 years engineering systems that integrate the EWS patented Reverse Polymerization™ process and proprietary microwave delivery system. EWS's unique microwave technology safely processes and recycles waste tires, while creating a highly valuable commodity output for industry, including carbon black, oil and steel. Each unit is designed to be energy efficient and where possible, create an economically positive model for the recovery of various hydrocarbon oil and gases. For more information please visit, www.ewi.ca.

Forward-Looking Statements

This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with the Company's business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect the Company's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Company's most recent Management Discussion & Analysis, which can be found on the Company's profile at www.sedar.com. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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