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VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 3, 2016) - CarbonOne Technologies Inc. (TSX VENTURE:CX) ("CarbonOne" or the "Company") is engaged in the development, commercialization and manufacturing of advanced materials, and today provides an update on advancement of the Company's products. CarbonOne also announces that the Company is undertaking a convertible debenture financing for up to $1 million to meet ongoing expenditures related to the advancement of its products, as well as general working capital.
XBar rebar is a rust proof composite rebar that is lighter and has higher tensile strength than steel rebar. XBar rebar provides a number of safety and engineering advantages over steel rebar and is designed to bring significant improvements across a wide range of applications. XBar rebar is produced by C1 Pultrusions LLC, an 80% owned subsidiary of CarbonOne. At the end of November 2015 C1 Pultrusions commissioned its XBar rebar production machine, which has the capacity to produce up to one million feet of XBar rebar per month.
C1 Pultrusions' approach to manufacturing composite rebar allows the company to manufacture a high-quality product that, based on preliminary testing, is expected to outperform its competitors on both a performance and cost perspective. CarbonOne is meeting with and providing samples of XBar rebar to rebar distributors, pre-cast concrete manufacturers and engineering firms with the objective of introducing XBar rebar to the market and bidding on upcoming projects. The biggest market opportunities for XBar rebar will come following completion of the testing process.
To confirm XBar rebar's performance across a range of strength and durability metrics, C1 Pultrusions has engaged North Carolina State University and the University of Miami to perform independent ICC-ES (International Code Council Evaluation Service) testing on XBar rebar and plans to also undertake testing according to the CSA (Canadian Standards Association) standards. C1 Pultrusions will receive preliminary test results throughout 2016 as each test is completed, allowing the Company to further expand the technical information that it can provide to engineering firms and potential buyers.
CarbonOne has achieved a milestone with its activated carbon product. Using its proprietary resin, CarbonOne has developed a pelletizing process that produces very high-quality activated carbon pellets. Samples tested by potential customers have met target specifications, and discussions are underway to commercialize this opportunity in the near term.
C1Core™ / C1Board™
CarbonOne has revised its C1Board strategy, based on customer feedback, and has designed a composite panel that will be used by manufacturers to provide an integrated product for the recreational vehicle, commercial trailer and parcel delivery vehicle industry. CarbonOne's C1Core panel will be produced as a multi-layer composite material to which customers can laminate reinforcement fiber on the outside to make a composite board. C1Core panel with these laminated reinforcement fibers is similar to the composite sandwich panels currently used in the industry, with the added benefits of higher compression strength, higher insulative value and fire resistance properties. CarbonOne is on track to deliver samples of C1Core panel to potential customers in March.
The Company is actively advancing defense products for both civilian and military applications.
The Company has substantially advanced its products and is focused on achieving revenue. Management has agreed to defer fees and salaries until the Company has achieved cash flow.
To ensure the Company can continue to advance its four core products, CarbonOne is raising up to $1 million through a convertible debenture financing with a two-year term. The debentures can be converted into units at $0.15 per unit. Each unit comprises one common share of the Company and one transferable common share purchase warrant. Each warrant entitles the holder to purchase one common share of the Company at a price of $0.20 per share for two years from the closing date of the financing, subject to adjustment in certain circumstances.
The 8% interest rate on the debentures is payable semi-annually in arrears. The debentures will have a forced conversion feature that is triggered if CarbonOne's share price trades above $0.30 for more than 20 consecutive trading days. The debentures will be redeemable with a 60-day notice period.
Directors and insiders have committed to $400,000 of the financing. Shareholders who are interested in participating in the financing should express their interest by the end of business on Monday, March 7th by contacting CarbonOne's Corporate Secretary at firstname.lastname@example.org or by phone at 604-609-6136.
ON BEHALF OF THE BOARD OF CARBONONE TECHNOLOGIES INC.
John Proust, Chairman & CEO
The TSX Venture Exchange has in no way passed upon the merits of the proposed Transaction. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTES REGARDING FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "will", "expected", "objective", "plans", or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are 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 be materially different from those expressed by such forward-looking statements or forward-looking information, including the business of the Company, CarbonOne's financial situation and its ability to continue as a going concern, CarbonOne's ability to complete the financing and raise additional capital on satisfactory terms, CarbonOne's ability to generate cash flow from XBar™ rebar, the results of XBar rebar testing and how this will affect CarbonOne's ability to market and sell XBar rebar, CarbonOne's ability to generate sales from its activated carbon pellets and pelletizing technology, CarbonOne's ability to finalize development of C1Core™ panel and deliver samples to potential customers, CarbonOne's ability to advance additional products to commercialization and cash flow, and CarbonOne's ability to capitalize on additional business opportunities. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
CarbonOne Technologies Inc
Chairman and CEO
CarbonOne Technologies Inc
Vice President, Investor Relations and Communications