PetroSonic now SONIC Subsidiary - Validation Testing Successful
TSX Venture Exchange Symbol: SNV
VANCOUVER, Sept. 24 /CNW/ - SONIC Technology Solutions Inc. ("SONIC" or "the Company") today confirmed that it has concluded the transactions announced previously to make PetroSonic Energy Systems Inc. a wholly owned subsidiary of the Company and for Dr. David Kahn to expand his contract role to develop PetroSonic. Details of both agreements were first announced on April 30th 2008 and May 6th 2008.
The conclusion of these agreements also signifies that the Company has successfully demonstrated the application of the PetroSonic upgrading process on a range of heavy oils supplied by Canadian, USA and international producers. The Company is now engaged in securing contracts for the PetroSonic upgrading process and in commencing the engineering and construction of its first plant.
The TSX Venture Exchange has now approved the terms of the agreement with Dr. Kahn and DK True Energy Development LLC, amended as follows: 300,000 options at an exercise price of $0.30; warrants (the "Warrants") for the purchase of 500,000 common shares of the Company upon the construction of a heavy oil upgrade demonstration plant; and common shares of the Company (the "Incentive Shares") to be issued based on the achievement of milestones related to the installation of subsequent heavy oil upgrading plants, equal to a value of $150 per barrel/day of installed upgrading plant processing capacity for the first four plants. The exercise price for the Warrants and the deemed price per share for the Incentive Shares will be based on the market price of the Company's common shares on the date that the relevant milestone is achieved. All securities issued by the Company pursuant to the agreement with Dr. Kahn and DK True Energy Development LLC will be subject to a four-month hold period following the date of issue.
About PetroSonic
PetroSonic is the exclusive licencee for a heavy oil upgrading process utilizing proprietary technology developed or owned by SONIC. The upgrading process incorporates de-asphalting and oxidation stages in a low temperature and pressure process. PetroSonic is marketing its upgrading process initially to small oil producers on a tolling fee basis whereby the net benefit of the upgrading is shared by PetroSonic and the producer. The PetroSonic upgrading technology will extend to larger projects where PetroSonic facilitates the incorporation of systems which can provide sustainable integrated upgrading.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.