Nuvolt Corporation Inc.
TSX VENTURE : NCO

Nuvolt Corporation Inc.

August 23, 2012 16:22 ET

Nuvolt Corporation Announces a Bridge Financing

LEVIS, QUEBEC--(Marketwire - Aug. 23, 2012) - Nuvolt Corporation Inc. (« Nuvolt ») (TSX VENTURE:NCO) announces the conclusion of a bridge financing of $425,000 from entities affiliated to members of its Board of Directors, in the form of a loan bearing interest at the rate of 12% and guaranteed by a third hypothec on the universality of its assets. This loan will become due on the earliest of the closing of a financing for a minimum of $1,250,000 and December 18, 2012.

«This bridge financing will secure the continuity of our operation while we attempt to conclude a strategic private placement to finance the marketing of SmartScan technology» says Mr. Jacques Dion, President and Chief Executive Officer of Nuvolt. «It shows the commitment of our board of directors and insiders to the future of the Company in the current market environment faced by many listed junior issuers, given the effect that this is having on our ability to complete financings and, correspondingly, our ability to maintain and preserve our existing operations, activities and assets. During the last three years, insiders, friends, family and business associates of Nuvolt have invested in excess of $6,000,000 ($12,375,000 since inception) by participating in various private placements of debt and equity. Nuvolt shareholders are fortunate to be able to count on such a dedicated board of directors and I personally wish to thank them for the trust and commitment they are placing in our company in this period of financial hardship for junior issuers».

In order to meet the continuous listing requirements of the TSX Venture Exchange while retaining its capacity to complete private placements of equity or convertible debt, Nuvolt intends to ask its shareholders at the next annual meeting of shareholders, scheduled for the middle of December 2012, to approve a consolidation of its common shares on a ten to one basis. This is an essential step for the conversion of the above described bridge loan at maturity as part of a larger private placement, so as to ensure the continuation of Nuvolt's activities.

About Nuvolt Corporation Inc.

Nuvolt has developed a specialized expertise in the monitoring and the management systems for electrical failures, power quality, the detection and neutralization of leakage current for the agriculture, maritime, commercial and industrial markets. SmartScan is now available to the agriculture market. The SmartScan system has the ability to predict an electrical failure on equipment and electrical networks. It could prevent equipment failures and production downtime on production assembly lines and commercial buildings and also fire risks. The ShipScan, for the maritime market, and the SmartScan Pro, for the industrial market, are under manufacturing. Launching to the market will be in September 2012.

Certain statements contained in this press release constitute forward-looking information. Such statements are based on the current expectations of management. You are cautioned that such statements can be subject to a multitude of risks and uncertainties that could cause actual results, future circumstances or events to differ materially from those projected in the forward-looking information. The reader should not place undue reliance on the forward-looking information included in this press release given that (i) actual results could differ materially from a conclusion, forecast or projection in the forward-looking information, and (ii) certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information could prove to be inaccurate. There is no guarantee that the proposed private placement can be completed on the terms described in this press release. These statements speak only as of the date they are made, and Nuvolt assumes no obligation to revise such statements as a result of any event, circumstance or otherwise, except in accordance with law.

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.

Contact Information

  • Jacques Dion CEO
    Telephone: (418) 833-0773
    (418) 833-4055 (FAX)