(TheNewswire)
Regina,Saskatchewan – TheNewswire - February 9, 2022 — HTC PurenergyInc. (“ HTC ” or the “ Company ”)(TSXV:HTC) (OTC:HTPRF) today provides an update on its specialdividend-in-kind (the “ Dividend ”) of 12,000,000 of the 20,000,000common shares (the “ DeltaShares ”) of Delta CleanTech Inc.(“ Delta ”) held by HTC, which Dividend was previously announced inits news release dated August 6, 2021.
In August 2021, the board of directors of HTC (the“ Board ”) approved the Dividend and the record date of the closeof business on August 13, 2021 (the “ Record Date ”) fordetermining holders of common shares of HTC (the “ HTC Shares ”)entitled to payment under the Dividend. While HTC intended to pay theDividend in 2021, through the issuance of Delta Shares, after furtherconsideration, it was decided to pay the Dividend in the first quarterof 2022.
HTC now expects the Dividend will be paid on or aboutFebruary 18, 2022 (the “ Dividend Payment Date ”) to holders of recordof HTC Shares at the close of business on the Record Date.
The Canadian Depository for Securities (“ CDS ”) and the U.S.Depositary Trust Company (“ DTC ”) have been notified of the Dividend andDividend Payment Date and arrangements are being made with CDS and DTCfor the issuance and distribution of Delta Shares to holders of recordof HTC Shares at the close of business on the Record Date. Beneficialshareholders (those holding their HTC Shares through brokerage houseswhich are in turn held via CDS and DTC) should contact theirrespective brokers for further information regarding payment of theDividend. Registered holders (those holding HTC Share certificatesand/or HTC Shares under the Direct Registration System(“ DRS ”) will receive Delta Shares by way of DRS statementsevidencing the Delta Shares to which they are entitled under theDividend.
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 beexercised prior to the Record Date, one Delta Share will be paid underthe Dividend for approximately every 17.25 HTC Shares held on theRecord Date, subject to adjustment.
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 Delta Shareson a recognized stock exchange in Canada (the “ Listing ”). TheListing of the Delta Shares occurred on August 19, 2021 upon thetrading of the Delta Shares on the Canadian SecuritiesExchange.
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 Assets consisted of all ofthe intellectual property and certain contractual agreements for theoperation of HTC’s CO2 capture systems and reclaimer systems.
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 CO2 extraction and patented purification technology witha focus on Environmental Social Governance (“ ESG ”) in responseto greater acceptance of climate change and its effects, as well associal license being sought by corporations in the energy industry. Areduced environmental footprint, through the capture of CO2,redirection of industrial by-products as usable hydrogen andutilization of reclaimed, recycled and reused extraction fluids, hasbecome an important currency for energy businesses, avoids the costof increasing regulation consisting of penalties through fees andtaxation, and makes a strong statement to stakeholders who expect ESGand Identity Preserved Waste (IPW) protocols to be instituted byenergy companies.
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 todiversify 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) 2022 TheNewswire - All rights reserved.