Sustainable Energy Technologies Ltd. (Alberta, Canada) announced that it has signed a letter of intent under which its major shareholder, Sabre Energy Ltd. (Canada), will invest $5.0 million in the company's power electronics subsidiary, Sustainable Energy Laboratories Inc., in exchange for a combination of common shares and convertible debentures of Sustainable Labs.
The investment is conditional upon Sabre and a related company exchanging 9,716,734 common shares of Sustainable Energy, approximately 30 percent of issued and outstanding shares, for approximately 37.5 percent of the shares of Sustainable Labs owned by the company. Sabre's shares in Sustainable Energy will be cancelled, resulting in the company having 22,608,353 common shares issued and outstanding.
Upon completion of the transactions, Sabre will own approximately 51 percent of Sustainable Labs, increasing to approximately 60 percent upon conversion of the convertible debentures. The company will continue to own the remaining shares of Sustainable Labs.
"The financing for Sustainable Labs comes at a critical time for us," said Michael Carten, president and CEO of the company. "We have completed development of power-conversion technologies that we strongly believe offer very unique advantages in the distributed-generation markets, especially the exploding solar-electric market in the US. We are on track with our strategy to position ourselves with a major residential fuel cell player, and to capture a significant share of that market, as it matures. We are also on track to deliver a unique 'upgradeable' inverter for the residential solar market in North America, which should generate substantial revenues in 2002."
