(TheNewswire)
Vancouver, B.C. – TheNewswire – December 6, 2022– Solarvest BioEnergy Inc. (“Solarvest”, or the “Company”)(TSXV:SVS) is pleased to announce that, through its wholly-ownedsubsidiary, Eversea Inc. (“Eversea”), it has exercised a purchaseoption agreement (the “Purchase Option”) on lands and anindustrial building it has been leasing from the PEI provincialgovernment. This purchase will allow the Company to continue itsR&D work as well as providing a permanent facility for commercialproduction of algae for its Omega-3 product line. The building is3332.8 m 2 (35,875 ft 2 ) and is situated on 6.5 ha (16.1 ac) of landlocated at Greenfield Road, Rte. 320, Summerville, PEI (the“Property”).
Funds to exercise the Purchase Option were raisedthrough a separate entity, Summerville Holdings Inc.(“Summerville”), a non-arm’s length private PEI corporationowned primarily by certain insiders of the Company (the “RelatedParties”). Pursuant to a Purchase Lease Buyback Agreement datedOctober 27, 2022 (the “Buyback Agreement”) between Eversea,Summerville and the Company, Summerville has agreed to lend Eversea upto $500,000 (the “Loan”) to allow it to exercise the PurchaseOption. In exchange for the Loan, the Company has agreed to, amongstother things: (i) transfer title of the land portion of the Propertyto Summerville with a buyback provision in favour of Eversea which maybe exercised at any time ; (ii) grant a security interest toSummerville on the industrial building; (iii) pay annual interest of12% on the Loan commencing on the earlier of 3 months after Everseahas exercised the Purchase Option or the Company has completed anequity financing of not less than $650,000; and (iv) subject toregulatory consent, issue an aggregate of 1 million warrants, eachwarrant entitling Summerville to acquire one common share of theCompany at a price of $0.15 per share for a period of 24months.
The participation by the Related Parties throughSummerville in the Buyback Agreement constitutes a "related partytransaction" as defined under Multilateral Instrument 61-101 Protection of MinoritySecurity Holders in Special Transactions (“MI61-101”) and, as such, normally triggers formal valuation andminority shareholder approval requirements. As the value of theBuyback Agreement does not exceed 25% of its market capitalization,however, the Company is of the view that it is entitled to rely oncertain provisions in MI 61-101 which exempt the Buyback Agreementfrom these requirements.
Claes Ellegaard, CEO of Solarvest said “this is animportant asset we have secured in our strategic plan to begin revenuegeneration, especially as bringing the commercial production ofOmega-3 in-house at our PEI facility is a critical component of ourstrategic plan. ”
Paradox Public Relations
The Company has engaged Paradox Public Relations Inc.(“Paradox”), to provide investor relations services.
The agreement has a term of 36 months, effectiveNovember 15, 2022, and can be terminated at any time without penaltyby either party by giving 30 days notice in writing. Paradox will bepaid a cash fee of $10,000 per month for its services. The Company hasalso agreed to grant 500,000 stock options exercisable at $0.12 pershare for a period of three years. The options vest in four equalquarterly tranches over 12 months, in accordance with the Company'sstock option plan and Policy 3.4 of the TSX Venture Exchange.
Paradox is a Montreal-based investor relationsconsultancy firm that has been in business for over 20 years. Paradoxhas represented a number of public companies through its extensivenetwork and experience in the capital markets. Paradox’s goal willbe to increase visibility of the Company in the financial community and assist in identifying potentialinvestors through the use of Paradox's contacts and proprietarydatabase. Paradox's extensive experience provides a full-serviceapproach to investor relations and a creative, results-driven investorrelations programs for Solarvest.
Claes Ellegaard, CEO of Solarvest added, “To continuethe transition from a R&D driven organization to a commerciallyfocused business entity, we intend to increase our financialcommunication significantly and we believe that Paradox will be aperfect conduit to assist us achieve this objective.”
Zoom Virtual InformationSession
Finally, the Company is pleased to announce that itwill be holding an investors information session. Shareholders andinvestors are invited to attend the session hosted by the Companyusing Zoom on December 6, 2022, Tuesday, at 4:00 p.m. (EST). ClaesEllegard, CEO of Solarvest, will outline the Company’s vision, itsstrategy, and the key issues facing the Company, followed by a Q &A session. To Join the Zoom meeting, please use the following Zoommeeting link: https://zoom.us/j/97336729769?pwd=R2sxZ3gzbWR1eG1Rck43NHRKY2IzZz09
AboutSolarvest
Solarvest BioEnergy Inc. is an algae biologics companywhose production platform provides it with an extremely flexiblesystem capable of producing numerous products from Omega 3 fatty acidsto human therapeutic proteins. The Company has successfullydemonstrated the expression of BMP, a high value therapeutic protein,viral antigens (immune stimulating proteins), and Cecropins(antimicrobial peptide/protein). The Company has initiated a programfor the expression of CBD and THC to be produced in GMP fermentationfacilities.
For further information contact:
Claes Ellegaard, CEO
Email: invest@solarvest.ca
Forward-LookingInformation
This press release contains "forward-lookinginformation" within the meaning of applicableCanadian securities legislation. Forward-looking informationincludes, but is not limited to, statements with respect to the termsof the Offering, the completion of the Offering and the expected useof the net proceeds received by the Company. Generally,forward-looking information can be identified by the use offorward-looking terminology such as "plans","expects" or "does not expect", "isexpected", "budget", "scheduled","estimates", "forecasts", "intends","anticipates" or "does not anticipate", or"believes", or variations of such words and phrases or statethat certain actions, events or results "may","could", "would", "might" or "willbe taken", "occur" or "be achieved".Forward-looking information is subject to known and unknown risks,uncertainties and other factors that may cause the actual results,level of activity, performance or achievements of the Company to bematerially different from those expressed or implied by suchforward-looking information, including but not limited to: generalbusiness, economic, competitive, geopolitical and socialuncertainties; and regulatory risks. Although the Company hasattempted to identify important factors that could cause actualresults to differ materially from those contained in forward-lookinginformation, there may be other factors that cause results not to beas anticipated, estimated or intended. There can be no assurance thatsuch information will prove to be accurate, as actual results andfuture events could differ materially from those anticipated in suchstatements. Accordingly, readers should not place undue reliance onforward-looking information. The forward-looking information containedin this news release is expressly qualified in its entirety by thiscautionary statement. The Company does not undertake to update anyforward-looking information, except as required by applicablesecurities laws.
Neither the TSXVenture Exchange nor its regulation services provider (as that term isdefined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this pressrelease.
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