CDTi Amends Existing Loan Agreement and Receives Additional $2 Million Loan from Kanis, S.A.
April 07 2016 - 8:00AM
Clean Diesel Technologies, Inc. (Nasdaq:CDTI) (“CDTi” or “the
Company”), a leader in advanced emission control technology, closed
a new $2.0 million loan and amended its existing loan agreement
with Kanis, S.A. The amended agreement provides CDTi
mandatory conversion rights of the aggregate principal balance of
$7.5 million into common stock of CDTi upon the occurrence of a
liquidity event defined as a strategic investment in CDTi or public
stock offering by CDTi.
“As a long-time investor in CDTi, Kanis, S.A. has demonstrated
continued confidence in our advanced materials business strategy,”
stated Matthew Beale, CDTi’s CEO. “We believe these agreements
provide us with an opportunity to significantly reduce the debt on
our balance sheet and simplify our capital structure to support our
path to profitability.”
The new $2.0 million loan bears an annual interest rate of 8%
with a maturity date of September 30, 2017. Terms of the loan
require CDTi to apply funds received from a liquidity event in
excess of $5.0 million toward the repayment of the loan. The
amendment to the $7.5 million loan gives CDTi the right to convert
the loan balance into common stock at a 25% discount to the price
of a strategic investment or public stock offering.
About CDTiCDTi develops advanced materials
technology for the emissions control market. CDTi’s proprietary
technologies provide high-value sustainable solutions to reduce
hazardous emissions, increase energy efficiency and lower the
carbon intensity of on- and off-road combustion engine systems.
With a continuing focus on innovation-driven commercialization and
global expansion, CDTi’s breakthrough Powder-to-Coat (P2C™)
technology exploits the Company’s high-performance, advanced
low-platinum group metal (PGM) emission reduction catalysts. Key
technology platforms include Mixed Phase Catalyst (MPC®), Base
Metal Activated Rhodium Support (BMARS™), Synergized PGM (SPGM™),
Zero PGM (ZPGM™) and Spinel™. For more information, please visit
www.cdti.com.
Forward-Looking StatementsCertain information
contained in this press release constitutes forward-looking
statements, including any statements that are not statements of
historical fact. You can identify these forward-looking statements
by the use of the words “believes”, “expects”, “anticipates”,
“plans”, “may”, “will”, “would”, “intends”, “estimates”, and other
similar expressions, whether in the negative or affirmative.
Forward-looking statements are based on a series of expectations,
assumptions, estimates and projections, which involve substantial
uncertainty and risk. In this document, the Company includes
forward-looking statements regarding the acceleration of the
Company’s business transformation into an advanced materials
company, the Company’s future financial performance, the timely
commercialization of the Company’s technology, the validation of
the quality of the Company’s technology and the availability of
future financing, are all subject to risks and uncertainties that
could cause our actual results and financial position to differ
materially. In general, actual results may differ materially
from those indicated by such forward-looking statements as a result
of risks and uncertainties, including, but not limited, to (i) that
the Company may not be able to (a) successfully implement, or
implement at all, its strategic priorities; (b) streamline its
operations or align its organization and infrastructure with the
anticipated business; (c) meet expectations or projections; (d)
decrease costs; (e) increase sales; (f) obtain adequate funding;
(g) retain or secure customers; (h) increase its customer base; (i)
protect its intellectual property; (j) successfully evolve into an
advanced materials supplier or, even if successful, increase
profitability; (k) successfully market new products; (l)
obtain product verifications or approvals; (m) attract or retain
key personnel; (n) validate, optimize and scale our powder-to-coat
capability; or (o) realize benefits from investments; (ii) funding
for and enforcement and tightening of emissions controls, standards
and regulations; (iii) prices of PGM and rare earth metals;
(iv) royalty and other restrictions on sales in certain Asian
countries; (v) supply disruptions or failures; (vi) regulatory,
marketing and competitive factors; (vii) environmental harm or
damages; and (viii) other risks and uncertainties discussed or
referenced in the Company’s filings with the Securities and
Exchange Commission, including its most recent Annual Report on
Form 10-K. In addition, any forward-looking statements represent
the Company’s estimates only as of the date of such statements and
should not be relied upon as representing the Company’s estimates
as of any subsequent date. The Company specifically disclaims any
obligation to update forward-looking statements. All
forward-looking statements in this press release are qualified in
their entirety by this cautionary statement.
Contact Information: Becky
Herrick or Cathy MattisonLHA (IR Agency)+1 415 433
3777bherrick@lhai.com / cmattison@lhai.com
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