Eavor Announces $11.4 million in Early Warrant Exercises and 2020 Technology Development Program
CALGARY, Alberta, May 05, 2020 (GLOBE NEWSWIRE) —
$11.4 million early warrant exercise financing
Eavor is pleased to announce receipt of $11.4 million in aggregate gross proceeds from the exercise of share purchase warrants issued as part of Unit Financings in 2018 and 2019. Each Unit issued in 2018 and 2019 consisted of one common share plus one-half of a share purchase warrant. One full share purchase warrant entitled the holder to purchase one common share up until December 31, 2020 or February 28, 2021, depending on the Unit terms.
During 2018 and 2019, a total of 930,000 share purchase warrants were issued. In order to provide existing owners an opportunity to minimize future dilution by exercising their share purchase warrants earlier than the warrant expiry dates, Eavor offered all existing warrant holders the opportunity to exercise their warrants by April 30, 2020 and, in return for the early exercise, receive a new share purchase warrant (the “Reload Warrant”) for each warrant exercised. Each Reload Warrant entitles the holder to purchase one common share at $25.00 per common share until December 31, 2021.
Warrant holders representing approximately 83% of all outstanding warrants, exercised their warrants early and received Reload Warrants.
2020 Technology development program
Following the successful demonstration of the Eavor-Loop™ technology at the Eavor-Lite™ project site near Rocky Mountain House, Alberta, the Company is pleased to announce plans for the testing of new and complementary technologies under our 2020 technical development program.
The 2020 technology development program, which includes a new demonstration site (“Eavor-Long™”), will be occurring at locations in Canada, France, Norway and the United States. The technologies being tested and demonstrated are expected to enable improved capital efficiencies and significantly expand the geographic areas and geologies within which Eavor-Loop™ commercial projects may be implemented.
The combination of existing working capital and the proceeds of the early warrant exercise are expected to be sufficient to fully fund the 2020 technical development programs.
Matt Toews, CTO – “I’m very excited to see the progress on our second-generation technology, and looking forward to the fast, iterative testing we are doing at several locations. This research and development program has the potential to drastically improve the capital efficiency of Eavor-Loop and bring it below existing mass market technologies.”
John Redfern, President & CEO – “This accelerated warrant funding enables Eavor to unconditionally commit to our 2020 technology development plans. We thank our investors and partners for the strong support they have shown by exercising their warrants well before their expiry date, and while all of us are coping with the impact COVID-19 and uncertain financial markets.”
About Eavor and Eavor-Loop™
Eavor (pronounced “Ever”) is a technology-based energy company led by a team dedicated to creating a clean, reliable and affordable energy future on a global scale. Eavor’s solution (Eavor-Loop™) represents the world’s first truly scalable form of green baseload power. Eavor achieves this by mitigating or eliminating many of the issues that have hindered traditional geothermal solutions. As a completely closed-loop system, Eavor has the advantage of no fracking, no GHG emissions, no earthquake risk, no water use, no produced brine or solids, and no aquifer contamination. Eavor instead circulates a benign working fluid which is completely isolated from the environment in a closed-loop, through a massive subsurface radiator. This “radiator” simply collects heat from the natural geothermal gradient of the Earth via conduction, at geologically common and drilling accessible rock temperatures. Unlike traditional geothermal, Eavor is not burdened with exploratory risk or limited to niche geographies through the need for highly permeable aquifers at volcanic-like temperatures. Unlike wind and solar, Eavor-Loop™ is not intermittent, but instead produces much-needed reliable baseload power. Eavor-Loop™ plus solar provides a way to offset the intermittency and daylight profile of solar without the need for batteries. With Eavor-Loop™, Earth is your Battery™, and it comes pre-charged for 30+ years of zero emission, clean, dispatchable generation.
In Canada, Eavor has been operating the Eavor-Lite™ pilot/demonstration project since 2019. The Eavor-Lite™ site is available for customer or investor tours. Further information of the Eavor-Lite™ demonstration site is available on our website at https://eavor.com/about/eavor-