EEStor Corporation Provides Update on Outstanding Filings and Loan Settlement and Amends Terms of Share Purchase Warrants
TORONTO, March 02, 2020 (GLOBE NEWSWIRE) — EEStor Corporation (TSX.V: ESU) (“EEStor” or the “Corporation”) announces that it remains unable to file its 2019 annual audited financial statements, the related management’s discussion and analysis, and CEO and CFO certifications (collectively, the “Required Filings”), which were due on or before January 28, 2020. The Corporation is currently subject to a voluntary management cease trade order issued by the Ontario Securities Commission on January 29, 2020 in connection with the Required Filings.
The annual financial statements and annual management’s discussion and analysis and the associated audit work is in process, but the Corporation is unable to complete and file such materials pending the completion of the audit. The Corporation continues to expect the audit to be completed in the coming weeks and anticipates being in a position to complete the Required Filings by March 20, 2020.As result of the delay in completing the Required Filings, the Corporation will also be delayed in the filing of its interim financial statements for the three-month period ended December 31, 2019, the related management’s discussion and analysis, and CEO and CFO certificates (collectively, the “Interim Filings”), which were due on or before March 2, 2020. The Corporation anticipates being able to complete the Interim Filings at the same time as the Required Filings.The Corporation confirms that it will continue to satisfy the provisions of the alternative information guidelines described in Section 9 and Section 10 of National Policy 12-203 (Management Cease Trade Orders) for so long as it remains in default of the requirement to file the Required Filings and the Interim Filings.The Corporation also confirms that it has elected not to proceed with the proposed settlement of a bridge loan provided to the Corporation by Robert Tocchio, a director of the Corporation, as previously announced. The final terms of the settlement required that a cash payment be made to Mr. Tocchio. Corporation, and Mr. Tocchio, have determined that it is in the best interests of the Corporation to preserve available cash at this time. The Corporation intends to revisit the settlement with Mr. Tocchio once additional capital is available, and in the interim the bridge loan will continue to be governed by the terms of the loan agreement previously entered into between the Corporation and Mr. Tocchio.The Corporation also announces that it intends to amend (the “Warrant Amendment”) the terms of an aggregate of 4,055,000 share purchase warrants (the “Warrants”) currently exercisable to acquire common shares of the Corporation at a price of $0.45 until March 16, 2020. Under the terms of the Warrant Amendment, the Warrants would be exercisable at a price of $0.10 until March 16, 2021. In accordance with the policies of the TSX Venture Exchange, the Warrant Amendment will also provide that the exercise period of the Warrants will be reduced to thirty days if, for any ten consecutive trading days, the closing price of the common shares of the Corporation on the TSX Venture Exchange is $0.125 or greater. The reduced thirty day period will begin seven calendar days after such ten consecutive trading day period.The Warrants were previously issued in connection with a non-brokered private placement completed by the Corporation, and not in compensation for any services provided to the Corporation. None of the Warrants are held by directors, officers or control persons of the Corporation. Completion of the Warrant Amendment remains subject to the approval of the TSX Venture Exchange, and the holders of the Warrants, and will not take effect until such time as approval has been received.The Corporation has not taken any steps toward any insolvency proceeding and the Corporation has no other material information to release to the public at this time. The Corporation has made the foregoing representations in accordance with the requirements of applicable securities laws.About EEStorEEStor is a developer of high energy density solid-state capacitor technology utilizing patented Composition Modified Barium Titanate (CMBT) material. EEStor is committed to providing commercially viable and sustainable energy solutions across a broad spectrum of industries and applications.Neither the 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.All statements, other than statements of historical fact, contained in this press release including, but not limited to (i) generally, or the “About EEStor” paragraph which essentially describes the Corporation’s outlook and objectives, constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, and are based on expectations, estimates and projections as of the time of this press release. Forward looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect.Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.FOR FURTHER INFORMATION, PLEASE CONTACT:Mr. Ian Clifford
Chief Executive Officer