- KALiNA Power (KPO) has entered an $8 million equity placement facility with Hong Kong-based energy and resource company Long State Investment
- This will help KALiNA access cash to fund its ongoing working capital over the next 24 months
- Initially, KALiNA will be able to draw up to $400,000 at a time, but it may increase that withdrawal to $800,000 with the consent of Long State
- The company is not required to deplete the facility and it may be terminated before the two-year term expires without any penalty
- If KALiNA does deplete the facility, then it will issue 20 million escrow shares to Long State
- KALiNA is up a slight 3.23 per cent and shares are trading for 3.2 cents each
KALiNA Power (KPO) has entered an $8 million equity placement facility with Hong Kong-based energy and resource company Long State Investment.
This will help KALiNA access cash to fund its ongoing working capital over the next 24 months.
Initially, KALiNA will be able to draw up to $400,000 at a time, but it may increase that withdrawal to $800,000 with the consent of Long State.
Long State will receive a four per cent commission on any withdrawal.
The company is not required to deplete the facility and it may be terminated before the two-year term expires without any penalty.
If KALiNA does deplete the facility, then it will issue 20 million escrow shares to Long State, but Long State can only deal with them by mutual agreement.
The company must issue 600,000 options when the facility is first used and additional tranches of 600,000 options when the facility reaches $6 million, $4 million, and $2 million levels.
“The company continues to make great progress on developing our projects in Alberta, and the signing of this facility with Long State provides us with tremendous funding flexibility by providing access to capital when and if required,” CEO and Managing Director Ross MacLachlan said.
“This facility represents a potential means of minimising dilution for existing shareholders at this time as we move forward in our partnership with Akira for our initial plants,” he added.
KALiNA is up a slight 3.23 per cent and shares are trading for 3.2 cents each at 2:19 pm AEST.