Orbite Technologies Inc. (TSX:ORT) (OTCQX:EORBF) today announces that, further to its press release of January 26, 2017, it has completed the public offering on a bought deal basis of 11,500 units of the Company at a price of $1,000 per Unit with Echelon Wealth Partners Inc. acting as sole underwriter. The Underwriter exercised in full its option to purchase an additional 1,500 Units, for aggregate gross proceeds of $11,500,000.

Each Unit consists of $1,000 principal amount of 5% convertible unsecured unsubordinated debentures and 3,125 share purchase warrants of the Company (which is equivalent to 100% of the number of class A Shares  into which the Debentures are convertible). The Debentures will mature on February 1, 2022 and will bear interest at a rate of 5% per annum payable semi-annually in cash or shares, at the option of the Company.

Each Debenture will be convertible, at the option of the holder at any time prior to the close of business on the tenth business day immediately preceding the Maturity Date, into the number of Common Shares computed on the basis of (i) the principal amount of the Debentures divided by the conversion price of $0.32 per Common Share (the “Conversion Price”), and (ii) an amount equal to the additional interest amount that such holder would have received if it had held the Debenture until the Maturity Date (the “Make-Whole Amount”) divided by the then 5-day volume weighted average trading price of the Common Shares on the Toronto Stock Exchange (the “Current Market Price”) on the date falling two trading days prior to the date of the conversion. The aggregate number of Common Shares to be issued upon conversion of the Debentures and for any payment of the Make-Whole Amount in Common Shares shall not exceed the number of Common Shares equal to the principal amount of the Debentures divided by $0.32 less the 25% maximum discount allowable in accordance with the rules of the Toronto Stock Exchange. Each Warrant will be exercisable into one Common Share for a period of 36 months from its issue date at a price of $0.32 per Common Share. The Debentures will also be convertible at the option of the Company after the first anniversary date on the same basis, subject to certain conditions.

For its services, the Underwriter received a cash commission of $920,000 (or equal to 8% of the gross proceeds raised under the Bought Offering). The Underwriter also received 1,796,875 non-transferable warrants equal to 5% of the Common Shares into which the principal of the Debentures sold in the Bought Offering are convertible. Each Broker Warrant will be exercisable into one Common Share for a period of 36 months from the closing of the Bought Offering at a price of $0.32 per Common Share.

The Units were qualified for sale by way of the Company’s short form base shelf prospectus dated January 6, 2017 and prospectus supplement dated January 27, 2017.

The Company intends to use the net proceeds of the Bought Offering to pursue production ramp-up and commercialization of high purity alumina plant (“HPA”) from its HPA plant, and for general corporate purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities offered in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Orbite

processes are expected to produce alumina and other high-value products, such as rare earth and rare metal oxides, at one of the lowest costs in the industry, and in a sustainable fashion, using feedstocks that include aluminous clay, kaolin, nepheline, bauxite, red mud, fly ash as well as serpentine residues from chrysotile processing sites. Orbite is currently in the process of finalizing its first commercial high-purity alumina (HPA) production plant in Cap-Chat, Québec and has completed the basic engineering for a proposed smelter-grade alumina (SGA) production plant, which would use clay mined from its Grande-Vallée deposit. The Company’s portfolio contains 16 intellectual property families, including 45 patents and 71 pending patent applications in 11 different countries and regions. The first intellectual property family is patented in Canada, USA, Australia, China, Japan and Russia. The Company also operates a state of the art technology development center in Laval, Québec, where its technologies are developed and validated.