Sustainable Energy Financing Agreement TerminatedApril 03, 2002 by Jeff Shepard
Sustainable Energy Technologies Ltd. (Calgary, Alberta) advised its shareholders that it will not proceed with a previously announced issue of secured convertible debentures and common share purchase warrants to raise up to $700,000 of new capital. Nor will it proceed with the acquisition of a battery-management technology scheduled to take place in conjunction with the private placement.
The failure to complete this transaction leaves the company with very low working capital reserves. Ongoing funding for development of the company’s power inverter is, however, currently being provided by RWE Piller GmbH, pursuant to a previously announced purchase order. Negotiations with RWE Piller to continue funding product development work, and to acquire a non-exclusive license of the company’s power conversion technologies for the fuel cell market, in exchange for a lump sum payment and royalties on product sales, are proceeding. A number of important technical and contractual issues remain unresolved, and there is no assurance that the company will ultimately conclude an agreement with RWE Piller.