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TORONTO, ONTARIO--(Marketwired - Mar 16, 2016) - UGE International Ltd. (the "Company" or "UGE") (www.ugei.com) (TSX VENTURE:UG)(OTCQB:UGEIF), a global leader in distributed renewable energy solutions, wishes to clarify the terms of the loan agreement entered into with the Bank of China (the "Bank of China Loan") as announced on January 26, 2016.
The Bank of China Loan is for a one-year term and carries an interest rate of 5.22% per annum, based on industry rates which are subject to change, with interest payments made on a quarterly basis. The Bank of China Loan is secured by the Company's assets in China and personally guaranteed by two related parties to the Company. In the event that extensions or refinancing of the loan is required, one of the related parties has guaranteed repayment of the Bank of China loan, if necessary, to facilitate such extensions or refinancing. If such a repayment by a related party is made, the Company will be indebted to the related party and such indebtedness would be unsecured and interest free, maturing on November 17, 2018.
The loan is for general working capital purposes. Proceeds from the Bank of China Loan were not used to finalize the acquisition of Endura Energy Project Corp. (the "Endura Acquisition") as was previously announced. Rather, the Endura Acquisition closed on a promissory note from the Company which is secured by a letter of credit with the Silicon Valley Bank, funded in full by cash from the proceeds of a related party loan.
UGE delivers immediate savings to businesses through cleaner electricity. We help commercial and industrial clients become more competitive through the low cost of distributed renewable energy. With over 300 MW of experience globally, we work daily to power a more sustainable world. Visit us at www.ugei.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for UGE's products and the availability of funding. These forward-looking statements are made as of the date hereof and UGE does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from UGE's expectations and projections.