CLEAR BLUE STAKEHOLDERS Provide Financing Package of $2.2 - $2.9 Million

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Clear Blue Technologies International Inc.
Clear Blue Technologies International Inc.

Shareholder Convertible Debenture, Government of Canada SOFII Loan and BDC Bank support is part of funding

TORONTO, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Clear Blue Technologies International Inc. (TSXV: CBLU) (the "Company") is pleased to announce that it has received significant financial support from its stakeholders to provide financial support to the Company as it continues to invest in its AI leadership in Smart Power for Internet of Things, Smart City and Telecom markets around the world. The financing consists of the following transactions:

  • SOFII (Southern Ontario Fund for Investment in Innovation), a previous supporter of Clear Blue has provided a 7-year loan of $500,000 with interest payable at 14% compounded annually to Clear Blue. Southern Ontario Fund for Investment in Innovation (SOFII). Launched by the Government of Canada in July 2012, SOFII supports high-growth, innovative Small and Medium-sized Enterprises (SMEs) in rural and urban communities.

  • A private placement of convertible debentures, including participation by management, contributed additional cash contribution, with the total sum of the convertible debenture totaling up to $2.2M, of which an initial tranche of $1.46M has been completed.

  • Business Development Bank of Canada (BDC), Clear Blue’s main financing partner, deferred a total of $240,000 of payments due in 2024 to a balloon payment at the end of the loan term, in 2026.

Taken combined, the above financings provide cash, deferred payments and additional liquidity totaling $2.9M.

“During these difficult financial and market times, the support from Clear Blue’s community of stakeholders – shareholders, investment bankers, Government of Canada (SOFII), and BDC is greatly appreciated and Clear Blue’s customers, employees, suppliers and other stakeholders greatly appreciate the ongoing support,” said Miriam Tuerk, CEO of Clear Blue. “Clear Blue’s expanded product line of 4 products has grown our addressable market and our investment in Smart Power management, control and predictive analytics has established us a global leader in providing reliable, mission critical Off-Grid and Hybrid power in the market. Our outlook for revenue growth is strong with an ever-growing sales funnel. This funding allows us to continue to execute on our plan, and grow our revenue and profitability.”

Additional details on the financing are outlined below:

The convertible debenture financing takes the form of a private placement offering (the "Offering") in the aggregate principal amount of up to $2,200,000 of unsecured convertible debentures (each, a "Debenture") at a price of $1,000 per Debenture. In this initial tranche of the Offering, gross proceeds of approximately $1.41M were subscribed for. Additionally, the Company has indications of interest for an incremental amount of $0.79M , expected to be completed in one or more additional tranches to be announced in due course.