Orbite Technologies Inc.
TSX : ORT
OTCQX : EORBF

Orbite Technologies Inc.

September 09, 2015 07:30 ET

Orbite Declares Intention to Purchase Outstanding 2012 Debentures

MONTREAL, QUÉBEC--(Marketwired - Sept. 9, 2015) - Orbite Technologies Inc. (TSX:ORT)(OTCQX:EORBF) ("Orbite" or the "Company") today announced its intent to purchase all outstanding 8% convertible secured debentures issued on December 13, 2012 (the "Debentures") as per the terms of the Indenture of that date. The Debentures, the outstanding principal of which amounts to $25M, will be purchased for a price of $1,000 for each $1,000 of outstanding principal amount plus unpaid accrued interest.

"The redemption of the Debentures will increase cash available for operations by $2.0 million on an annual basis due to a reduction in interest payments," stated Jacques Bédard, Orbite's CFO. Additionally, the 2012 and 2013 refundable investment tax credits received, against which the debentures were collateralized, exceed the $25M of the principal amount of outstanding debentures by $1.0 million, and will be used against the Company's capital expenditures at its HPA facility."

The holders of redeemed Debentures shall also receive share purchase warrants (the "Warrants") concurrently with the redemption of the Debentures in accordance with the terms of the Indenture. Each such Warrant will entitle its holder to purchase one Class A share of the Company at a price of $3.50 until December 13, 2017. The Debentures are expected to be redeemed on October 16, 2015. Orbite reserves its right to withdraw the redemption at any time on or prior to October 13, 2015.

About Orbite

Orbite Technologies Inc. (formerly Orbite Aluminae Inc.) is a Canadian cleantech company whose innovative and proprietary processes are expected to produce alumina and other high-value products, such as rare earth and rare metal oxides, at one of the lowest costs in the industry, and in a sustainable fashion, using feedstocks that include aluminous clay, kaolin, nepheline, bauxite, red mud, fly ash as well as serpentine residues from chrysotile processing sites. Orbite is currently in the process of finalizing its first commercial high-purity alumina (HPA) production plant in Cap-Chat, Québec and has completed the basic engineering for a proposed smelter-grade alumina (SGA) production plant, which would use clay mined from its Grande-Vallée deposit. The Company's portfolio contains 15 intellectual property families, including 18 patents and 107 pending patent applications in 11 different countries and regions. The first intellectual property family is patented in Canada, USA, Australia, China, Japan and Russia. The Company also operates a state of the art technology development center in Laval, Québec, where its technologies are developed and validated.

Forward-looking statements

Certain information contained in this document may include "forward-looking information". Without limiting the foregoing, the information and any forward-looking information may include statements regarding projects, costs, objectives and future returns of the Company or hypotheses underlying these items. In this document, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management's good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. These risks uncertainties and assumptions include, but are not limited to, those described in the section of the Management's Discussion and Analysis (MD&A) entitled "Risk and Uncertainties" as filed on March 31, 2015 on SEDAR.

The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.

Contact Information

  • NATIONAL Equicom
    Marc Lakmaaker
    External Investor Relations Consultant
    416-848-1397
    mlakmaaker@national.ca

    For Media Inquiries:
    NATIONAL Equicom
    Scott Anderson
    External Media Relations Consultant
    416-586-1954
    sanderson@national.ca