Clear Blue Technologies Completes Debt Settlement and Funding

Clear Blue Technologies Completes Debt Settlement and Private Placement

Clear Blue Technologies International Inc. (TSXV: CBLU) has successfully finalized its shares for debt transaction and a private placement unit offering, significantly bolstering its financial health. The company transformed approximately $8.77 million in debt into equity through its latest transactions, demonstrating its commitment to streamline operations and enhance liquidity.

Overview of Financial Transactions

In line with its recent announcement, Clear Blue entered into agreements with various debenture holders and creditors to settle outstanding debts. Each settlement resulted in units being converted, with units consisting of one common share along with one warrant, priced at $0.03 per unit. This led to the issuance of around 292 million common shares and approximately 272 million warrants, a substantial step in addressing the company’s financial obligations.

Details on Shares for Debt Settlement

Among the significant contributors to this share for debt initiative was BDC Capital Inc., a subsidiary of the Business Development Bank of Canada. BDC opted to convert a principal amount of $2.2 million from its convertible debenture into units, receiving over 73 million common shares alongside matching warrants. This move illustrates BDC's confidence in the company's prospects.

Impact of BDC's Involvement

Before the conversion, BDC held about 4.9 million common shares and $2 million of its convertible debenture. Following the conversion, BDC's stake increased to over 78 million common shares, representing about 16.66% on a non-diluted basis. This conversion not only alleviated debt pressure but also allowed BDC to increase its stake, reinforcing its belief in Clear Blue's future.

Completing the Private Placement

Clear Blue also executed a non-brokered private placement, sizeably adding $1.575 million to its resources. The offering was structured similarly to the debt settlement, providing one common share and a warrant for a unit price of $0.03. This strategic move is intended for general corporate purposes and working capital, solidifying the company’s operational foundation.

Insider Participation in the Private Placement

A noteworthy aspect of this private placement was the involvement of several directors, officers, and insiders who engaged in this funding round with a total investment of approximately $1.4 million. Their participation is categorized as a related party transaction, thus aligning their interests closely with enhancing shareholder value.

Future Plans: Share Consolidation

In a further strategic step, Clear Blue is poised to implement a proposed consolidation of its common shares. The plan suggests a consolidation ratio of six pre-consolidation shares for every one post-consolidation share. This consolidation aims to improve the marketability of its shares, thus appealing to potential investors and facilitating compliance with the TSX Venture Exchange policies.

Shareholder Engagement

A special meeting of shareholders is planned, during which detailed information regarding this share consolidation will be presented. This proactive move reflects Clear Blue’s commitment to maintain transparent communication with its stakeholders.

About Clear Blue Technologies International

As a leader in providing clean, managed wireless power, Clear Blue Technologies is dedicated to meeting the pressing global need for reliable solar and hybrid energy. With systems deployed across 37 countries, the company remains at the forefront of renewable energy solutions, extending its impact across various sectors including telecom, lighting, and security.

Frequently Asked Questions

What was Clear Blue Technologies' recent financial move?

Clear Blue Technologies completed a shares for debt transaction and a private placement to strengthen its financial position, converting $8.77 million in debt into equity.

Who was involved in the shares for debt conversion?

BDC Capital Inc., among other creditors, converted significant debt into common shares and warrants as part of the transaction.

What is the purpose of the private placement?

The net proceeds from the private placement, totaling approximately $1.575 million, are designated for working capital and general corporate purposes.

Why is Clear Blue consolidating its shares?

The company aims to enhance the marketability of its shares and to comply with the securities policies of the TSX Venture Exchange through this consolidation.

What does Clear Blue Technologies offer?

Clear Blue specializes in providing clean, managed, wireless power solutions for various applications, including solar and hybrid energy systems for critical infrastructures.

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