SHARC International Reports on 2019 Fiscal Year - Seite 2

In May 2020, SHARC won the opportunity to collaborate on a pilot project funded by the Electric Power Research Institute (“EPRI”) after presenting at the Incubatenergy Labs Challenge. After being selected as 1 of 17 finalists from a pool of over 130 applicants, SHARC made a virtual pitch on April 7^th, 2020. The Company has now been selected as 1 of 10 companies to demonstrate innovative power delivery and use technologies under the leadership of EPRI, Ameren Corporation, Tennessee Valley Authority and Southern California Edison.

On May 29, 2020, the Company issued unsecured convertible debenture units with a principal amount of $2,000,000. The debenture matures on May 29, 2023 and bears interest at an annual rate of 2% due semi-annually.

On May 29, 2020, the Company settled with all holders (“Debentureholders”) of the Company’s $1,320,000 and $1,023,000 12% unsecured, convertible debentures which were set to mature on May 30, 2020 and June 29, 2020 (the “Maturing Debentures”).The Debentureholders have entered into settlement agreements with the Company (the “Settlement Agreements”) pursuant to which the Debentureholders accepted 75% cash payout of the outstanding principal amount of the Maturing Debentures, the payout of any accrued and unpaid interest up to the date of maturity and the amendment of 1,673,571 common share purchase warrants (the “Warrants”) in consideration for the cancellation of the Maturing Debentures and a release of the Company’s obligations under the Maturing Debentures.

“SHARC has spent the fourth quarter of 2019 and year to date 2020 restructuring its operations to be focused on an OEM sales model, divesting the UK operations and hiring and successfully reallocating internal resources to sales and sales support positions,” says Hanspaul Pannu, Chief Financial Officer of SHARC International Systems Inc. “We have come a long way from 2019 and we don’t hide that we still have a long way to go. However, the road to profitability has never been clearer. 2020 is shaping up to be a monumental year in establishing waste water heat recovery as a viable solution supporting Electrification and Decarbonization.”