EnerDynamic Hybrid Technologies Corp. Announces Planned Securities for Debt Transactions and Closes Non-Brokered Private Placement

TORONTO, May 17, 2019 /CNW/ - EnerDynamic Hybrid Technologies Corp. ("EHT" or the "Company") (TSX-V: EHT) announces that it has undertaken negotiations with certain creditors of the Company to settle up to $2.5 million of certain existing debt in exchange for the issuance of up to 50,000,000 units of the Company ("Units") at a deemed price of $0.05 per Unit (the "Securities for Debt Transactions").

Each Unit consists of 1 common share in the capital of the Company (each a "Common Share") and 1 share purchase warrant of the Company (each a "Warrant"). Each Warrant entitles the holder thereof to acquire 1 Common Share at a price of $0.075 per Common Share at any time prior to 5:00 p.m. (Eastern Standard Time) on the date that is 36 months following the date of issuance, provided that in the event that, during the period following 4 months and a day after the date of issuance, the trading price of the Common Shares exceeds $0.15 per Common Share for 10 consecutive trading days, the Company may accelerate the expiry date of the Warrants to the date that is 30 calendar days after the date on which the Company issues notice to all holders of Warrants of the new accelerated expiry date.

The Company's decision to negotiate the Securities for Debt Transactions is intended to preserve its existing cash balances.

All securities issuable in connection with the Securities for Debt Transactions will be subject to statutory hold periods of 4 months and 1 day from the date of issuance in accordance with applicable securities law legislation. The Securities for Debt Transactions remain subject to the approval of the TSX Venture Exchange.

The Company is also pleased to announce that it has completed a non-brokered private placement of $400,000.00 that was conditionally accepted by the TSX Venture Exchange on May 2, 2019.  The private placement, which closed on May 17, 2019, is comprised of 8,000,000 units at a price of $0.05 per unit.  Each unit consists of one common share and one common share purchase warrant, with each whole warrant being exercisable for one common share of the Company at a price of $0.07 per share for a term of 36 months (the "Offering").  No finder's fee was paid in connection with this placement.

Proceeds from the private placements will be used for general working capital purposes.

Pursuant to applicable securities laws, all securities issued under the Offering are subject to a four month and a day hold period from the date of issuance.

This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About ENERTEC

The EHT advanced ENERTEC Modular Wall and Roof System uses a proprietary skin and foam core that is stronger and more energy efficient than traditional wood or steel structures providing the highest ratings for energy efficiency.  EHT works with its partners worldwide to erect the buildings on-site utilizing EHT staff and local crews.  After installation, each structure can be furnished and finished to meet the customer's requirements including siding, tile, kitchens and bathrooms or segregated commercial rooms. The finished wall product can be shipped on pallets and delivered via rail, truck or water in standard formats.

At the core of the ENERTEC product line is the ENERTEC Embedded Solar Roof Module. Solar cells can be embedded in a proprietary fire proof skin resulting in substantial cost savings by eliminating heavy glass panels and aluminum racking required for traditional solar panels. Two barriers to greater adoption of solar energy are weight limitations of the roof on which solar panels could be deployed and onerous shipping and labour costs. A lighter product at a better price point will open a larger market for solar due to the faster return of capital investment especially for rural and remote users looking to go off-grid. Furthermore, the entire EHT embedded solar roof becomes a massive solar panel capable of producing significantly more energy than the home requires, allowing the structure to then become an important source of power for the local micro grid or large battery storage systems.

About EnerDynamic Hybrid Technologies

EHT delivers proprietary, turn-key energy solutions which are intelligent, bankable and sustainable. Most energy products and solutions can be implemented immediately wherever they are needed. EHT stands above its competitors by combining a full suite of solar PV, wind and battery storage solutions, which can deliver energy 24 hours per day in both small-scale and large-scale format. In addition to traditional support to established electrical networks, EHT excels where no electrical grid exists. The organization supplies advanced solutions for various industries in combination with energy saving and energy generation solutions. EHT's expertise includes the development of module structures with full integration of smart energy solutions. These are processed through EHT's production technologies into attractive applications: modular homes, cold storage facilities, schools, residential and commercial out buildings and emergency/temporary shelters.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The statements herein that are not historical facts are forward‐looking statements. Forward-looking information involves risk, uncertainties and other factors that could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks related to the completion of all approvals from applicable regulatory authorities and the completion and execution of final debt settlement agreements in respect of the Shares for Debt Transactions. Although EHT believes that the assumptions used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. EHT disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable securities laws.

SOURCE Enerdynamic Hybrid Technologies Corp.

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