SEATTLE, WASHINGTON -- (Marketwired) -- 05/22/13 -- MicroPlanet Technology Corporation ("MicroPlanet" or the "Corporation") (TSX VENTURE: MP)(PINKSHEETS: MCTYF) a provider of smart grid and power quality technology, which significant increases efficiency, quality and conservation of electricity is pleased to announce that today it has closed the first tranche of a non-brokered private placement of 11,197,031 Units at a price of $0.05 per Unit for gross proceeds of CDN$559,852. MicroPlanet previously received conditional listing from the TSX Venture Exchange to sell up to 30,000,000 Units at a price of $0.05 per Unit for gross proceeds of up to CDN$1.5 million (the "Equity Private Placement"). Each Unit will be comprised of one common share in the capital of the Corporation and one common share purchase warrant. Each warrant entitles the holder to acquire one common share in the capital of the Corporation at any time until the date that is 36 months following the Closing date of the Offering upon payment of the exercise price of $0.10 per common share.
The Equity Private Placement is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the final approval of the TSX Venture Exchange. The common shares are subject to a four-month hold period in accordance with applicable securities laws. The Units will be offered and sold only on a private placement basis to investors who purchase securities pursuant to an exemption to the prospectus requirement under Canadian securities laws.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in the United States. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an application exemption from the registration requirements.
The Corporation also announces that its audited 2012 Consolidated Financial Statements filed on April 30, 2013 included the correction of an error identified during the preparation and audit of such financial statements. As more fully described in the notes to the financial statements, the correction pertains to the presentation of its convertible note obligations (the "Notes"). Historically, the Notes were recognized upon issuance at their fair value using a discounted cash flow approach, with the residual amount remaining assigned to the conversion feature which was treated as an equity element. Due to the fact that these notes are denominated in a currency other than the Corporation's functional currency, the Corporation has since determined that the conversion feature contained within these Notes represents an embedded derivative as defined by International Financial Reporting Standards ("IFRS") and accordingly requires a different means of valuation and presentation. The IFRS method adopted by the Corporation to properly present the Notes in its filed 2012 Consolidated Financial Statements combines the host contract and its embedded derivative at fair value through profit and loss. Changes in fair value are reflected in the Statement of Operations and Comprehensive Loss for each reporting period. For presentation purposes, the Corporation's policy is to report interest paid to note holders as a separate line item in the Statement of Operations and Comprehensive Loss, rather than aggregating such payments with the other changes in fair value of the notes each period.
In order to properly reflect opening balances under IFRS and to present accurate comparable values for the year ended December 31, 2011, the Corporation's filed 2012 Consolidated Financial Statements included restatements to correct the affected balances on the Statement of Financial Position, Statement of Operations and Comprehensive Loss, Statement of Changes in Equity, and Statement of Cash Flows for the year ended December 31, 2011 and December 31, 2010 as appropriate.
About MicroPlanet Technology Corp.
MicroPlanet Technology Corp. is a smart grid, energy conservation Corporation whose technology improves power quality and saves electric energy by the dynamic management of incoming voltage to a home or business. Installation of MicroPlanet products for utilities has improved utility services and facilitates the integration of renewable energy sources, including solar and wind, to the power grid. MicroPlanet is based in Seattle, WA and is listed on the TSX Venture Exchange (TSX-V) trading under the stock symbol: MP. MicroPlanet's website is www.microplanet.com.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THE TERM DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
MicroPlanet Technology Corp.
President & Chief Executive Officer
MicroPlanet Technology Corp.
Director, Licensing & Acquisitions
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