EEStor Corporation Provides Update on Annual Filings and Arranges Bridge Financing

TORONTO, Feb. 19, 2020 (GLOBE NEWSWIRE) -- EEStor Corporation (TSX.V: ESU) (“EEStor” or the “Corporation”) announces that it remains unable to file its 2019 annual audited financial statements, the related management’s discussion and analysis, and CEO and CFO certifications (collectively, the “Required Filings”), which were due on or before January 28, 2020.  The Corporation is currently subject to a voluntary management cease trade order issued by the Ontario Securities Commission on January 29, 2020 in connection with the Required Filings.

The annual financial statements and annual management’s discussion and analysis and the associated audit work is in process, but the Corporation is unable to complete and file such materials pending the completion of the audit.  The Corporation continues to expect the audit to be completed in the coming weeks and now anticipates being in a position to complete the Required Filings no later than March 20, 2020.

As result of the delay in completing the Required Filings, the Corporation also anticipates a delay in the filing of its interim financial statements for the three-month period ended December 31, 2019, the related management’s discussion and analysis, and CEO and CFO certificates (collectively, the “Interim Filings”), which are due on or before March 2, 2020.  The Corporation anticipates being able to complete the Interim Filings at the same time as the Required Filings.

The Corporation confirms that it will continue to satisfy the provisions of the alternative information guidelines described in Section 9 and Section 10 of National Policy 12-203 (Management Cease Trade Orders) for so long as it remains in default of the requirement to file the Required Filings and the Interim Filings.

The Corporation also announces that it has reached an agreement with an arms-length third-party to provide a bridge loan to the Corporation in the principal amount of $50,000.  The loan will have an initial term of ninety days, and the proceeds will be utilized for general working capital purposes.  The loan will not bear interest, but the lender will be entitled to receive a financing fee of $7,500 upon maturity of the loan, along with 1,000,000 common share purchase warrants (the “Loan Warrants”) as a bonus for providing the loan.  The Loan Warrants will be exercisable to acquire common shares of the Corporation at a price of $0.05 per share for a period of twelve months.  Issuance of the Loan Warrants is subject to the approval of the TSX Venture Exchange.