Clear Blue Technologies Unveils Strategic Financial Restructuring

Strategic Financial Restructuring by Clear Blue Technologies

Clear Blue Technologies International Inc. (TSXV: CBLU) is taking decisive steps towards financial revitalization, reflecting the supportive environment from a range of stakeholders. This financial restructuring aims to position the company optimally for capturing growth opportunities in the coming years.

Comprehensive Debt Settlement Approach

The company has announced a significant initiative to settle existing debts, amounting to approximately $8.77 million. The plan includes a shares-for-debt transaction, where existing convertible debentures and loans will be converted into equity. Each unit issued will comprise one common share combined with a common share purchase warrant at a price of $0.03 per share, with each warrant providing the option to be exercised within two years at a $0.05 strike price.

Number of Shares Issued

Should the debt settlement be finalized as proposed, the company will issue approximately 292.4 million common shares alongside 272.5 million warrants. This not only alleviates financial burden but also strengthens the equity base, fostering more stability moving forward.

Private Placement for Additional Capital

Accompanying the shares-for-debt initiative is a non-brokered private placement. This endeavor aims to raise up to $2 million in additional working capital through similar terms as the previously mentioned transaction. This influx of funds will solidify the company's position, allowing it to navigate operational needs and pursue new initiatives effectively.

Outcomes of the Private Placement

If successful, this private placement will lead to the issuance of around 66.7 million common shares and corresponding warrants, aimed at fueling corporate activities and innovation.

Share Consolidation Efforts

The restructuring plan also incorporates a share consolidation strategy, whereby every six pre-consolidation shares will be consolidated into one post-consolidation share. This adjustment aligns with the regulatory requirements set forth by the TSX Venture Exchange and is intended to enhance marketability and shareholder value.

Future Directions and Expectations

The proposed consolidation will be discussed in a special shareholder meeting scheduled for early 2025, where further details will be provided through an information circular. It's important to note that fractional shares resulting from this consolidation will not be distributed, ensuring a streamlined process moving forward.

CEO Insights on Company Vision

In light of these developments, Co-Founder and CEO Miriam Tuerk expressed optimism about Clear Blue's positioning in the telecom and smart city landscapes across North America and Africa. With four proven products in its portfolio, the company is set to capitalize on the opportunities that have been hindered due to the last few challenging years marked by global events.

Acknowledgment of Stakeholder Support

Miriam highlighted the critical role of the Clear Blue community, comprising shareholders, customers, suppliers, employees, and creditors, in this crucial phase. The proactive support received is viewed as instrumental in achieving the outlined restructuring goals, emphasizing a collective effort towards growth and resilience.

Anticipated Outcomes

The implementation of these financial restructuring initiatives is expected to be completed by the end of the current financial year, pending final agreements and regulatory approvals from TSXV. The issued securities will adhere to a hold period of four months, ensuring compliance with applicable securities regulations.

Insider Participation Details

Furthermore, there will be participation from insiders in these transactions, necessitating adherence to regulations pertaining to related party transactions. Clear Blue intends to utilize exemptions to expedite processes, thereby ensuring the company can maintain its strategic direction without significant delays.

About Clear Blue Technologies International

Clear Blue Technologies International operates as a leader in the Smart Off-Grid™ sector, focusing on providing clean and managed wireless power solutions worldwide. With a footprint across 37 countries, including significant operations in the U.S. and Canada, the company remains committed to delivering innovative solar and hybrid power systems tailored for critical applications, like IoT devices and security.

Frequently Asked Questions

What prompted Clear Blue Technologies to restructure?

The restructuring is aimed at alleviating approximately $8.77 million in debts and enhancing financial stability, paving the way for future growth.

How will the shares-for-debt transaction work?

This transaction will convert existing debts into common shares and purchase warrants at a predetermined price, strengthening the equity structure of the company.

What is the purpose of the private placement?

The private placement is designed to generate up to $2 million in new working capital, supporting ongoing operations and strategic projects.

Why is the share consolidation necessary?

The share consolidation will improve the marketability of shares and ensure compliance with regulatory requirements, ultimately benefiting shareholder interests.

What are the expected outcomes of these initiatives?

These initiatives are expected to reduce financial liabilities, enhance the company's capital base, and allow it to seize new growth opportunities in the telecom and smart city markets.

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