Business
Orbite Closes a $5 Million Debt Financing with Investissement Quebec
Orbite Closes a $5 Million Debt Financing with Investissement Quebec.
About this update from Orbite Technologies Inc
[{"type":"text","content":"\n \n \n Orbite Closes a $5 Million Debt Financing with Investissement Quebec\n \n \nOrbite Closes a $5 Million Debt Financing with Investissement Quebec\n \n MONTREAL, QUEBEC--(Marketwired - Jun 1, 2016) - Orbite Technologies Inc. (TSX:ORT)(OTCQX:EORBF) (\"Orbite\" or the \"Company\") further to its press releases of April 27 and May 19, 2016, announced the closing of a debt financing in the amount of $5 million with Investissement Québec (\"IQ\"), acting as agent of the Government of Québec. \n As part of the financing, Investissement Québec subscribed to a convertible debenture (the \"Debenture\") in the capital amount of $5 million at an interest rate of 10% annually. \n \"With the raise of $ 5 million in the form of a convertible debenture and $ 6 million in equity the Company raised in recent weeks, Orbite is now well engaged to complete its HPA plant,\" stated Glenn Kelly, CEO of Orbite. \"We anticipate awarding the remainder of the mechanical/piping work through fixed-price contract next week, with mobilization on-site targeted the week of June 20th. We expect the remainder of the work to take approximately 2 months subsequent to mobilization. CNC remobilized this week to complete the remainder of the work contracted through them, while in parallel, we have continued with commissioning activities, which have progressed according to plan. We are grateful to IQ for their continued support, which has enabled us to put in motion the final steps towards commencing commercial production.\" \n The debenture is unsecured, matures five years from the closing date and bears interest at a rate of 10% annually, payable monthly. Interest earned during the first two years will be capitalized and payable upon the maturity date of the debenture or convertible into shares at the market price at the time of conversion, at the holder's sole discretion. The debenture (principal only) is convertible at the option of the holder at any time prior to the maturity date, in Class A Shares of the Company at a price of $0.241 per share. \n The debenture and the underlying shares issued in connection with the financing are subject to a mandatory hold period of 4 months after the closing date. The net proceeds of the financing will also be used to complete the construction of the production plant of high purity alumina located in Cap-C...