Kelso Technologies Inc. Announces Non-Brokered Private Placement

NOT FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia and BONHAM, Texas, Feb. 02, 2021 (GLOBE NEWSWIRE) -- Kelso Technologies Inc. (“Kelso” or the “Company”), (TSX: KLS), (NYSE American: KIQ) announces the intention to raise up to CAD$6,300,000 by way of a non-brokered private placement of up to 7,000,000 units at a price of CAD$0.90 per unit (the “Private Placement”). Each unit will consist of one common share of the Company (a “Common Share”) and a one half of one Common Share purchase warrant of the Company (each whole Warrant, a "Warrant"). Each whole warrant can be exercised at CAD$1.15 for the first 12 months or CAD$1.30 for the second 12 months from the date of closing of the Private Placement.

All common shares issued under the Private Placement will be subject to a four month plus one day hold period in accordance with applicable Canadian securities laws. Closing of the Private Placement is subject to the receipt of all regulatory approvals, including those of the Toronto Stock Exchange (“TSX”), and all other closing conditions, including but not limited to, execution of the subscription agreements between the Company and the subscribers.

Subject to acceptance by the TSX, an 8% finder’s fee may be payable on all or a portion of the subscriptions accepted by Kelso.

The proceeds of the Private Placement will be used for the capital requirements of the Company’s 2021 business plans including ongoing marketing initiatives and scheduled new product development.

James R. Bond, CEO of the Company comments that, “Kelso is a proven product development organization that over the past decade has successfully designed, engineered and sold proprietary products for transportation related applications. This Private Placement is the first time since September 2012 that Kelso has sought to access new equity capital from the investment community to help finance the Company’s ongoing R&D and business development plans. The Company has generated over US$120 million dollars in revenue at above average profit margins over the past decade. A percentage of these sales have been reinvested in the development of promising new technologies. Unfortunately, COVID-19 has created unprecedented financial uncertainties and the duration of the pandemic remains unpredictable. The rail tank car industry went into hibernation in the second quarter of 2020 and Kelso’s residual cash flows from operations and capital reserves have diminished since that time. The Company has several new proprietary products advancing toward revenue generation from new markets that include safeguards against accidental release of hazardous materials such as ethanol and propane. These new market opportunities along with the Company’s established products are expected to grow revenues back to profitable levels once the negative impact of the COVID-19 crisis is behind us.”