UGE Announces Debt Settlement and Further Debt Reduction
Feb. 23, 2016 - TORONTO, ONTARIO - UGE International Ltd. (the "Company" or "UGE") (www.ugei.com) (TSX VENTURE:UG)(OTCQB:UGEIF), a global leader in distributed renewable energy solutions, is pleased to announce it has taken steps to further strengthen its balance sheet through certain debt repayment and forfeiture transactions.
UGE's debt reduction was conducted through three transactions. Two related party loans to UGE from Chairman Ms. Xiangrong Xie were reduced through repayment of 6,846,216 RMB ($1,054,286 USD) and through debt forfeiture of 1,830,148 RMB ($281,834 USD). Concurrently, and to provide UGE with greater corporate flexibility, $715,000 USD was advanced by another related party as a loan to the Company's US subsidiary. The loan does not bear interest and is due on January 1, 2018. The net reduction in debt through the three transactions was approximately $621,120 USD. This is in addition to the debt to equity conversion announced February 8, 2016 and confirmed as finalized below, which reduced the Company's debt obligation by $500,000 USD.
Since the quarter ended September 30, 2015, the Company has reduced related party debt by approximately $1,146,783 USD, a significant step in its goals to reduce debt levels and strengthen its balance sheet.
"With these transactions complete, we have a cleaner, stronger balance sheet for the year ahead," stated Nick Blitterswyk, CEO of UGE. "We appreciate the support and flexibility our co-founders have provided towards our continued growth in the commercial solar sector."
Shares for Debt Issuance
The Company has issued 1,240,907 common shares to a related party in settlement of a debt in the amount of CAD$694,908 ($500,000 USD), as previously announced by press release on February 8, 2016 (the "Shares for Debt Transaction"). The shares issued pursuant to the Shares for Debt Transaction are subject to a hold period of four months and a day from the date of issuance, with such hold period expiring on June 23, 2016.