Clear Blue Technologies Announces Extension and Renewal of Existing Loan and Convertible Debentures

TORONTO, Sept. 20, 2023 (GLOBE NEWSWIRE) -- Clear Blue Technologies International Inc. ("Clear Blue" or the "Company") (TSXV: CBLU) (FRANKFURT: 0YA) (OTCQB: CBUTF), announces that it has concluded a renewal and extension of its loan with BDC Capital. Concurrently, the Company is very pleased to announce that the holders of its 10% convertible debentures issued in Q4 of 2021 have also agreed to renew and amend the terms of the debentures. Together these two items provide a significant improvement in working capital for Clear Blue and further position the company for positive cashflow going forward.

• Strategic Support from BDC Capital
  
  Clear Blue is pleased to announce it has concluded an agreement with BDC Capital to renew its commercial loan for a three-year term, ending in July 2026. BDC is the primary lender and supporter of Clear Blue and has provided strong support to the company in both equity and debt financings. As part of this agreement, the existing $3 million loan has a renewed three-year payment schedule and an extension of the term of the loan to July 2026.
  
  BDC Capital has additionally entered into a debt settlement agreement with the Company to settle aggregate indebtedness of $343,000 owed by the Company in exchange for the issuance of 4.9 million common shares of the Company at a price per common share of $0.07 (the "Shares for Debt Transaction"), being slightly higher than $0.04, the closing price of the Company's common shares on September 13, 2023.
  
  The completion of the Shares for Debt Transaction is subject to a number of conditions, including the approval of the TSX Venture Exchange (the "TSXV"). All securities issued pursuant to the Shares for Debt Transaction will be subject to a hold period of four months and one day from the date of issuance in accordance with applicable securities legislation.

• Extension and Amendments to the 2021 Convertible Debentures
  
  In October & November of 2021, the Company issued 4-year convertible debentures with a total principal value of $4,334,000 (the "Debentures"). Clear Blue is pleased to announce that the holders of the Debentures have agreed to extend and amend the Debentures on the following terms:
  
  
  • The maturity date of the Debentures is extended from October 27, 2025 to October 27, 2026;
  • The interest rate payable twice a year remains unchanged at 10% per annum;
  • The conversion price of the Debentures is decreased from $0.40 to $0.15;
  • The exercise price of the common share purchase warrants forming part of the units issuable on conversion of the Debentures (the "Warrants") is decreased from $0.60 to $0.25;
  • The term of the Warrants is extended from 48 months to 60 months; and
  • The forced conversion price of the Debentures is decreased from when the daily VWAP of the Company's common shares is greater than $1.20 for any 10 consecutive trading days to when the daily VWAP of the Company's common shares is greater than $0.90 for any 10 consecutive trading days.
  • No other terms of the Debentures are proposed to be amended. The proposed amendments do not entail new funds being received by the Company. The proposed amendments are subject to all required third party approvals including, without limitation, the approval of the TSXV. The Company will issue a further news release upon receipt of the approval of the TSXV.