OPEL Technologies Inc. (TSX-V: OPL) (“OPEL” or “the Company”), a leading global supplier of high concentration photovoltaic (“HCPV”) solar panels, solar tracker systems and a semiconductor device and process developer, announces that OPEL has entered into a financing arrangement with Kodiak Capital Group, LLC (“Kodiak”) to provide the Company up to $10 million of funding capacity (the “Facility Amount”) in the form of an equity line of credit. The arrangement requires Kodiak to purchase up to $10,000,000 of the common shares of the Company. The Company may draw-down funds from time to time, at its sole discretion, over a period of two years after the common shares has been qualified for distribution. All shares will be issued by the Company at a price equal to the market price of the Company’s shares on the TSX Venture Exchange based on the five consecutive trading days immediately after a draw-down notice has been delivered by the Company less a discount of 10%. The amount that the Company shall be entitled to request from each of the drawdowns shall be equal to the greater of (i) $1,000,000 or (ii) up to 200% of the average daily volume (US market only) (“ADV”) multiplied by the average daily trading volume of the Company’s shares for the three trading days prior to the delivery by the Company of a draw-down notice.
The arrangement is subject to the approval of the TSX Venture Exchange and the distribution of the common shares
is subject to the issuance of a receipt for a prospectus (final) which is required to be filed by Company with the
appropriate Canadian securities regulatory authorities. The Company has agreed to issue to Kodiak 2.5% of the
Facility Amount payable in newly-issued common shares of the Company upon the issuance of a receipt for a
prospectus (final) to the Company and 2.5% of the Facility Amount payable in newly-issued common stock at the
time of the first draw down of funds by the Company.
OPEL Technologies will use these funds for its growth and expansion plans and to meet its contractual obligations
stimulated by its accelerated sales and to address further research and development efforts of OPEL Technologies
including its subsidiaries and affiliate companies.
“This $10 million comes at the perfect time to help fulfill the rapid growth and expansion we have been enjoying for
the past several years,” said Michael McCoy, Chief Financial Officer of OPEL Technologies. “The scope of this
investment by a premier U.S. financial investment firm underscores our belief in OPEL’s future. Kodiak has a deep
industry background in semiconductors, clean technologies and communications infrastructures. Kodiak’s expertise
and experience certainly is a perfect fit for OPEL Technologies’ businesses because Kodiak has a keen understanding
of our business segments and the financial requirements it takes to become first a dominant force then maintain that
position within the markets,” stated Leon M. Pierhal, CEO of OPEL.
OPEL will continue to provide updates as new information becomes available, pursuant to full disclosure
requirements.