Orbite Technologies Inc.
TSX : ORT
OTCQX : EORBF

Orbite Technologies Inc.

May 11, 2016 07:30 ET

Orbite Receives First Instalment of 2014 Investment Tax Credits

MONTREAL, QUEBEC--(Marketwired - May 11, 2016) - Orbite Technologies Inc. (TSX:ORT)(OTCQX:EORBF) ("Orbite" or the "Company") today announced that it received a first payment in the amount of $3.2 million from tax authorities in Quebec for investment tax credits ("ITC") relating to equipment purchased for manufacturing and processing in the Gaspe region during the 2014 financial year. This ITC payment represents approximately 80% of the $4.0 million of ITCs expected to be received for 2014, while the Company has received 100% of the ITCs for the 2012 and 2013 financial years.

The sums received will be used to pay down a portion of the Company's 2015 credit facility.

Aggregate ITCs received to date for the Cap Chat Facility total $29.2 million. The Company has a balance of $13.0 million in ITCs to be received, of which $0.8 million relates to the 2014 financial year, approximately $8.5 million to the 2015 financial year, and an estimated $3.7 million for 2016 as of the date hereof. The Company anticipates accruing an additional $2.8 million during the remainder of 2016 such that total ITCs under this program should reach approximately $45 million for the completion of its HPA facility at Cap-Chat. The Company also expects to accrue additional ITCs in 2017 related to the investments for the increase in plant capacity and the conversion of the extraction section.

About Orbite

Orbite Technologies 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 16 intellectual property families, including 32 patents and 101 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 30, 2016 on SEDAR, including those under the headings "Recent increase in budgeted capital costs will require additional financing and may adversely impact our prospects", "We will need to raise capital to continue our growth" and "Development Goals and Time Frames".

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