3 October 2011

OPEL raises $10m from Kodiak Capital

OPEL Technologies Inc of Toronto, Ontario, Canada, which makes high-concentration photovoltaic (HCPV) panels and solar tracker systems through its subsidiary OPEL Solar Inc and develops semiconductor devices and processes through US affiliate OPEL Defense Integrated Systems (ODIS Inc) of Shelton, CT, has entered into a financing arrangement for New York-based Kodiak Capital Group LLC to provide up to $10m of funding capacity in the form of an equity line of credit, in exchange for up to $10m of the common shares of OPEL.

OPEL may draw-down funds from time to time, at its sole discretion, over a period of two years after the common shares have been qualified for distribution. All shares will be issued at a price equal to the market price on the TSX Venture Exchange, based on the five consecutive trading days immediately after a draw-down notice has been delivered minus a discount of 10%. The amount that OPEL will be entitled to request from each of the draw-downs shall be equal to the greater of (i) $1m or (ii) up to 200% of the average daily volume (US market only) (ADV) multiplied by the average daily trading volume of the shares for the three trading days prior to the delivery of a draw-down notice.

The arrangement is subject to the approval of the TSX Venture Exchange, and distribution of the common shares is subject to the issuance of a receipt for a prospectus (final) which is required to be filed OPEL with the appropriate Canadian securities regulatory authorities. The firm has agreed to issue to Kodiak 2.5% of the facility amount payable in newly issued common shares upon the issuance of a receipt for a prospectus plus 2.5% at the time of the first draw-down of funds by OPEL.

OPEL says that it will use the funds for its growth and expansion plans and to meet its contractual obligations stimulated by its accelerated sales and to address further R&D efforts of OPEL Technologies (including its subsidiaries and affiliate companies).

“This $10m comes at the perfect time to help fulfill the rapid growth and expansion we have been enjoying for the past several years,” says chief financial officer Michael McCoy. “The scope of this investment by a premier US financial investment firm underscores our belief in OPEL’s future,” says CEO Leon M. Pierhal. “Kodiak has a deep industry background in semiconductors, clean technologies and communications infrastructures,” he adds. “Kodiak's expertise and experience certainly is a perfect fit for OPEL Technologies' businesses because Kodiak has a keen understanding of our business segments and the financial requirements it takes to become first a dominant force then maintain that position within the markets.”


Visit: www.opeltechinc.com

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