Kelso Technologies Inc. Announces Non-Brokered Private Placement
03 February 2021 - 1:00AM
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.”
About Kelso Technologies
Kelso is a diverse product development company
that specializes in the design, production and distribution of
proprietary service equipment used in transportation applications.
Our reputation has been earned as a designer and reliable supplier
of unique high quality rail tank car valve equipment that provides
for the safe handling and containment of hazardous and
non-hazardous commodities during transport. All Kelso products are
specifically designed to provide economic and operational
advantages to customers while reducing the potential effects of
human error and environmental harm.
For a more complete business and financial
profile of the Company, please view the Company's website at
www.kelsotech.com and public documents posted under the Company’s
profile on www.sedar.com in Canada and on EDGAR at www.sec.gov in
the United States.
Legal Notice Regarding Forward-Looking
Statements: This news release contains “forward-looking
statements” within the meaning of applicable securities
legislation. Forward-looking statements are indicated expectations
or intentions. Forward-looking statements contained in this news
release include statements regarding the use of proceeds, the
Closing of the Private Placement, that we can develop new
proprietary products that include safeguards against accidental
release of hazardous materials and the anticipated future financial
performance of the Company which involves known and unknown risks
and which may not prove to be accurate. Although Kelso believes its
anticipated future results, performance or achievements expressed
or implied by the forward-looking statements and information are
based upon reasonable assumptions and expectations, they can give
no assurance that such expectations will prove to be correct. The
reader should not place undue reliance on forward-looking
statements and information as such statements and information
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
Kelso to differ materially from anticipated future results,
performance or achievement expressed or implied by such
forward-looking statements and information, including without
limitation that the requirement for regulatory approvals from the
TSX may not be received for the private placement, uncertainty in
global economic markets as a result of the current COVID-19
pandemic and stock market volatility may restrict access to new
equity capital from investors, our current and new product
portfolio may not provide the intended economic or operational
advantages to customers; we may be unable to grow and sustain
future revenue streams at profitable levels because of competition
or limited interest in our products; orders may be cancelled and
competitors may enter the market with new product offerings which
could capture some of our market share; costs of production may
increase affecting our profitability and the economic viability of
our business plans; we may have to find additional capital to keep
up with costs and/or technological or product development expenses;
and our products may not capture or maintain market share as well
as expected. Except as required by law, the Company does not intend
to update the forward-looking information and forward-looking
statements contained in this news release.
On behalf of the Board of
Directors,
James R. Bond, CEO and President
For further information, please
contact:
James R. Bond, CEO and President |
Richard Lee, Chief Financial Officer |
Corporate Address: |
Email: bond@kelsotech.com |
Email: lee@kelsotech.com |
13966 -
18B Avenue South Surrey, BC V4A 8J1 www.kelsotech.com |
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