Daily News: November 25, 2014

Black Coral Committed to Funding OneRoof Facility

OneRoof Energy Group announced Hanwha Holdings notified the company it will not provide its additional portion of the funding under the combined $16.7 million working capital credit line and project credit line. Black Coral Capital notified the company it remains committed to funding its portion of the capital credit line.

The company and Black Coral entered into a non-binding term sheet designed to provide the company with an additional $15 million of capital from Black Coral and other investors in the form of secured convertible promissory notes. The convertible notes would be secured on the company’s assets on substantially similar terms as the existing working capital line of credit and would be convertible into the company’s common shares at a 20% discount to the market price as of the date the transaction is approved by the TSX Exchange Venture (TSXV). The convertible notes are anticipated to bear interest at up to 10% per annum and to mature, if not earlier converted into common shares, on the 12-month anniversary of their initial issuance. At the closing of the convertible notes financing, it is contemplated that Black Coral would exchange its outstanding working capital line of credit notes, due December 31, 2014, for convertible notes with the later maturity date. The convertible notes financing described in the Term Sheet is non-binding and subject to the preparation of mutually acceptable documentation, TSXV approval and other conditions precedent.

“We are pleased to be moving from the short-term debt financing completed in October to a longer-term equity-based funding structure,” stated David Field, president and CEO. “As an original investor in the company’s lease portfolio, as well as corporate equity, Black Coral continues to be a strong supporter of OneRoof Energy.”

OneRoof Energy Group is a complete solar services provider offering homeowners everything from traditional and lease financing, PPAs, solar system design and installation project management to ongoing system monitoring and maintenance services.