Vancouver, British Columbia–(Newsfile Corp. – March 13, 2018) – Stina Resources Ltd. (CSE: SQA) (OTCQB: STNUF) (FSE: 01X) (“Stina” or the “Company“) is pleased to announce a non-brokered financing up to $10,000,000 principal amount secured convertible debentures (“Debentures“). The Debentures will mature on the second anniversary of the date of issuance and bear interest at a rate of 9.0% per annum, which shall accrue and be paid on the maturity date. Each Debenture shall be convertible into units (“Units“) of the Company at a conversion price of $0.60 per Unit. Each Unit will be comprised of one common share (each, a “Common Share“) of the Company and one-half of a Common Share purchase warrant, each whole warrant (each, a “Warrant“) will be exercisable to purchase a Common Share at an exercise price of $1.00 for a period of three (3) years from the date of issuance.
The Debentures will be secured by a general security interest over all the assets of the Company, and through guarantees and a general security interest from each of the Company’s subsidiaries. Under the general security agreement, the Company will agree not to pledge, sell, lease or otherwise dispose of its assets, other than in the normal course, without prior written consent of the holders of the Debentures.
The proceeds of the financing will be used to complete the acquisition of the assets of Gildemeister energy storage GmbH (“Gildemeister“), including its CellCube vanadium redox flow battery (“VRB“), and for working capital purposes. CellCube VRBs are used for a variety of industries including grid storage; micro-grids; and off-grid storage for solar and wind.
Stina has also entered into an agreement to acquire Jet Power And Control Systems Ltd. (“Jet Power“), a North American leading-edge provider of custom and off-the-shelf electrical equipment and systems for heavy power users, pipeline companies, refineries, manufacturers, municipalities and infrastructure providers and equipment. Its key products include electrical switchgear, motor control switchers, and solar power inverters. Stina will acquire all of the outstanding securities of Jet Power in consideration of 6,000,000 Common Shares. Management of Stina anticipates that through the acquisition of Jet Power, Stina will be able to accelerate the sale of CellCube VRBs worldwide and offer complementary products and services.
The grid connected storage market is expected to grow 44% annually with the market size reaching US $18 billion by 2024 (Navigant Research). Upon the Company completing its acquisition of the assets of Gildemeister and Jet Power, management believes it will be ideally positioned to capitalize on the demand for VRBs worldwide to help meet the world’s rapidly growing energy storage needs.
The Company further announces it is fully subscribed for a third tranche of its previously announced non-brokered private placement. Closing is expected to occur on March 15, 2018, through the issuance of 3,422,818 units of the Company at a price of $0.27 per Unit for gross proceeds of $924,161. Each unit shall consists of one Common Share and one-half of a Common Share purchase warrant, each whole Warrant entitling the holder thereof to purchase one Common Share at a price of CDN$0.45 per Common Share for a period of three (3) years from the date of issuance.
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This news release contains certain “forward-looking statements” within the meaning of Canadian securities legislation. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur; they are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “aims”, “potential”, “goal”, “objective”, “prospective”, and similar expressions, or that events or conditions “will”, “would”, “may”, “can”, “could” or “should” occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements are discussed in this news release and the Company’s annual and quarterly management’s discussion and analysis filed at www.sedar.com. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.