(TheNewswire)
Regina,Saskatchewan – TheNewswire – August 6, 2021 -- HTC Purenergy Inc. (“ HTC ” or the “ Company ”) (TSXV:HTC) (OTC:HTPRF) announcestoday that the board of directors of the Company (the “ Board ”) hasapproved the issuance of a special dividend-in-kind (the“ Dividend ”) of 12,000,000 of the 20,000,000 common shares(“ Delta Shares ”) of Delta CleanTech Inc. (“ Delta ”) held byHTC.
The Dividend will be payable on or before September 15,2021 to holders of record of common shares of HTC (“ HTC Shares ”) at theclose of business on August 13, 2021 (the “ Record Date ”).
The Dividend will be taxable and non-residents ofCanada will be subject to Canadian withholding taxes. In respect ofthose non-residents of Canada which are subject to withholding taxes,HTC will retain such number of Delta Shares with a fair market valueequal to the maximum withholding obligation for such respectiveshareholder. Shareholders with questions regarding the tax treatmentof dividends should consult with their own tax advisors or contacttheir local office of the Canada Revenue Agency and, where applicable,the provincial taxation authorities.
The Dividend will be distributed on a pro rata basis.No fractional shares or cash in lieu thereof (or any other form ofpayment) will be payable under the Dividend. Any fractional interestsin Delta Shares under the Dividend will be rounded up or down to thenearest whole number of shares. Based upon the number of HTC Sharescurrently outstanding and ignoring the effect of rounding forfractional interests or any convertible securities which may beexercise prior to the Record Date, one Delta Share will be paid underthe Dividend for approximately every 17.25 HTC Shares held on theRecord Date. It is expected that DRS statements evidencing the DeltaShares paid under the Dividend will be mailed to holders of HTC Shareson or before September 30, 2021.
The Delta Shares distributed under the Dividend aresubject to a pooling arrangement restricting the trading of the DeltaShares on a stock exchange with a release schedule over a period of 24months at 3 month intervals following the listing of the common sharesof Delta on a recognized stock exchange in Canada.
The Delta Shares were acquired by HTC in connectionwith the previously announced sale of clean energy assets(“ Clean EnergyAssets ”) to Delta, paid for by the issuance of20,000,000 Delta Shares. The Clean Energy Assetsconsisted of all of the intellectual property and certain contractualagreements for the operation of HTC’s CO 2 capture systems and reclaimersystems.
Following the distribution of the Delta Shares underthe Dividend, HTC will continue to hold 8,000,000 Delta Shares, someof which will be distributed to holders of HTC in one or more futuredistributions of dividends.
The Company has filed a Form 3E with the TSX VentureExchange (the “ Exchange ”) in respect of the Dividend,notifying the Exchange of the Record Date. The distribution of theDividends is subject to regulatory approval, including the approval ofthe Exchange.
Delta is differentiated in the market by developing itsproprietary CO 2 extractionand patented purification technology with a focus on EnvironmentalSocial Governance (“ ESG ”) in response to greater acceptance ofclimate change and its effects, as well as social license being soughtby corporations in the energy industry. A reduced environmentalfootprint, through the capture of CO 2 , redirection of industrialby-products as usable hydrogen and utilization of reclaimed, recycledand reused extraction fluids, has become an important currency forenergy businesses, avoids the cost of increasingregulation consisting of penalties through fees and taxation, andmakes a strong statement to stakeholders who expect ESG and IdentityPreserved Waste (IPW) protocols to be instituted by energycompanies.
HTC’s sale of its Clean Energy Assets has unlockedthe value of the Clean Energy Assets IP by allowing Delta to befinanced and its growth accelerated by a focused skilled andexperienced management team. The Dividend, paid as adividend-in-kind of Delta Shares, allows HTC shareholders toparticipate directly in Delta’s growth and success.
On January 28, 2021 HTC issued a press releaseregarding the disposition of the Clean Energy Assets, containing adiscussion of the rationale and benefits of the transaction. HTCshareholders are now realizing those benefits by directly holdingshares in Delta as well as HTC.
HTC continues to operate its business associated withits hemp segment, which includes the production contracting of broadacre industrial hemp for: BioFibre utilized in BioPlastics,BioTextiles/Composites, and BioCellulose, as well as Hemp Seed Proteinand Hemp Seed Oil, and Cannabinoid Extraction and continues to diversify its hemp portfolio.
For more information contact:
Jeff Allison
(306) 352-6132
jallison@htcpurification.com
Neither the TSX Venture Exchange norits regulation services provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of the release.
This press release contains “forward-lookingstatements” or “forward-looking information” (collectivelyreferred to herein as “forward-looking statements”) within themeaning of applicable securities legislation.
Forward-looking information is based on currentexpectations, estimates and projections that involve a number ofrisks, which could cause actual results to vary and, in someinstances, to differ materially from those anticipated by HTC anddescribed in the forward-looking information contained in this pressrelease.
Although HTC believes that the material factors,expectations and assumptions expressed in such forward-lookingstatements are reasonable based on information available to it on thedate such statements were made, no assurances can be given as tofuture results, levels of activity and achievements and suchstatements are not guarantees of future performance.
HTC Purenergy Inc. (OTCQB:HTPRF) trades on the OTCQBVenture Market for early stage and developing U.S. and internationalcompanies. Companies are current in their reporting and undergo anannual verification and management certification process. Investorscan find real-time quotes and market information for the company on www.otcmarkets.com.
Copyright (c) 2021 TheNewswire - All rights reserved.