ST. JOHN’S, NEWFOUNDLAND – 20 JUNE 2018 /GLOBE NEWSWIRE/ – Kraken Robotics Inc. (TSX-V: PNG) (OTCQB: KRKNF) is pleased to announce a non-brokered private placement offering with Ocean Infinity Ltd. (the “Offering”) whereby Ocean Infinity will acquire 11,520,000 units (the “Units”) in Kraken which, upon completion, will result in Ocean Infinity owning 9.99% of Kraken’s issued common shares. Kraken’s relationship with Ocean Infinity started in 2017, and this investment in Kraken forms the starting point for the expansion of this relationship. Given this, Kraken and Ocean Infinity are working towards negotiating the terms of a strategic alliance to promote more closely aligned cooperation in maritime robotics technology, products, and services.
Kraken CEO Comments
Karl Kenny, Kraken’s President and CEO, said, “Today’s announcement of an investment by industry innovator Ocean Infinity is yet another solid step in our journey to build our maritime robotics platform. We are excited to partner with Ocean Infinity, a current customer, as we focus our combined energies serving a broader range of customers with industry-leading solutions. Ocean Infinity has clearly demonstrated their ability to apply their considerable resources and expertise to not only enter but also transform the ocean survey and exploration industry.”
Ocean Infinity CEO Comments
Oliver Plunkett, Ocean Infinity’s President and CEO, said, “At Ocean Infinity, we work diligently to understand our customers’ needs and invest in innovation to ensure success. Our relationship with Kraken represents a powerful opportunity to develop important new sensor, system and data analytics capabilities for our industry.”
Private Placement Details
Pursuant to the Offering, the Company will issue 11,520,000 Units at a price of C$0.20 per Unit. Each Unit will consist of one common share and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”), with each Warrant exercisable to acquire one common share of Kraken at C$0.40 for a period of 36 months from the date of issuance, subject to adjustment and acceleration. All shares issued under the Offering will be subject to a four month hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada. In addition, Ocean Infinity has agreed to an additional 32 month hold period resulting in a combined 36 month hold period. All proceeds raised from the sale of the Units will be used by Kraken to build inventory and general corporate and working capital purposes.
The Warrants are subject to an acceleration clause whereby if the closing trading price of the common shares is greater than $0.50 for 20 consecutive trading days after the date that is four months and a day after the closing of the Offering, Kraken may, at its option, elect to accelerate the expiry date of the Warrants to 20 calendar days following the delivery of a written acceleration notice.
Closing of the Offering is expected to occur later in June 2018 and remains subject to receipt of the approval of the TSX Venture Exchange.
About the Kraken/Ocean Infinity Relationship
Since the fall of 2017 Kraken has made two announcements involving Ocean Infinity, a next generation company in the ocean survey and ocean exploration market:
- September 7, 2017 – Ocean Infinity awards Kraken $3 million contract for Kraken’s AquaPix® to be integrated onboard Ocean Infinity’s HUGIN AUVs; and
- May 14, 2018 – Ocean Infinity to help launch Kraken’s next generation SAS, the AquaPix® Multispectral SAS.
Building upon this relationship, Kraken and Ocean Infinity are working to formalize their strategic alliance collaboration and are currently working on a non-binding memorandum of understanding to this end.
About Ocean Infinity
Ocean Infinity is a next generation offshore ocean survey and ocean exploration company using a fleet of autonomous underwater vehicles. Ocean Infinity provides a comprehensive seabed exploration system that is highly efficient and permits multi-tasking. Their comprehensive range of on-board systems and equipment permit continuous operation through to project completion, which gives them the capability to inspect, repair or recover discoveries made during a survey, eliminating the need for a second vessel. Their approach dramatically increases productivity and reduces downtime – saving clients time and money with their ’one stop shop’ multi-purpose vessel. For more information, please visit https://oceaninfinity.com/
About Kraken Robotics Inc.
Kraken Robotics Inc. (TSX.V:PNG) (OTCQB: KRKNF) is a marine technology company that is dedicated to the production and sale of software-centric sensors and underwater robotic systems. The Company is headquartered in St. John’s, Newfoundland with offices in Dartmouth, Nova Scotia; Bremen, Germany; and Fairfax, Virginia. For more information, please visit www.krakenrobotics.com, www.krakenrobotik.de, www.krakenpower.de. Find us on social media on Twitter (@krakenrobotics), Facebook (@krakenroboticsinc) and LinkedIn.
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company’s current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company’s public disclosure documents. Many factors could cause the Company’s actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and the OTCQB has neither approved nor disapproved the contents of this press release.
For further information, please contact:
Sean Peasgood, Investor Relations
Greg Reid, Chief Financial Officer
Glenda Leyte, Marketing Manager
(709) 757-5757 extension 288