Streetlight Intelligence Inc. is pleased to announce that Hydro Ottawa Holding Inc. ("Hydro Ottawa") has completed a strategic investment in the Company.
Victoria, British Columbia, August 26, 2009 - Streetlight Intelligence Inc. ("SLQ") is pleased to announce that Hydro Ottawa Holding Inc. ("Hydro Ottawa") has completed a strategic investment in the Company.
In consideration of a payment of $500,000, Hydro Ottawa has acquired an option to purchase up to 5,000,000 common shares of SLQ ("Purchase Option") at an exercise price of $0.11 per share, exercisable on or before August 19th, 2010. The Purchase Option includes a put right (the "Put Right"), whereby Hydro Ottawa may require SLQ to repurchase and cancel the Purchase Option for $500,000 plus an amount equal to an inherent return on the investment of approximately 10% per annum. In order to provide Hydro Ottawa with security to support SLQ's obligation to repurchase the Purchase Option, SLQ granted Hydro Ottawa a first priority security interest over all of its present and future property, assets and undertaking of the Issuer, including all fixed assets, intellectual property and other intangibles. If the Purchase Option is instead exercised, SLQ will then receive a further $550,000 for an aggregate investment amount of $1,050,000. The Purchase Option and any common shares issuable upon exercise of the Purchase Option shall be subject to a hold period expiring on December 19th, 2009. Net proceeds from the sale of the Purchase Option are expected to be approximately $465,000 after agent fees.
"As a progressive leader in the power industry, Hydro Ottawa has dedicated the time and resources to
thoroughly evaluate the capabilities and value proposition of our Lumen IQ(TM) technology," states Vince Krynski, Chief Executive Officer of SLQ. "This strategic investment is an outstanding endorsement of compatibility between our technology and Hydro Ottawa's mandate to reduce energy consumption using real world, cost-effective solutions. We are very excited about all of the opportunities that this new relationship with Hydro Ottawa presents."
"There are significant energy savings and maintenance cost savings to be gained through more efficient and intelligent street lighting technology, and we believe Streetlight Intelligence Inc. has a technology that will perform very well," said Rosemarie Leclair, President and Chief Executive Officer of Hydro Ottawa Holding Inc. "This investment allows us to advance our objectives for both business growth and energy conservation, contributing to a more sustainable energy future."
Hydro Ottawa is also currently in discussions with SLQ regarding a broader strategic investment that could include a future investment, the establishment of a distribution agreement between SLQ and Hydro Ottawa for the Province of Ontario, as well as the potential purchase of SLQ's products and services. The discussions are preliminary and no assurances can be made that the discussions will result in any of the above-mentioned outcomes.
About Hydro Ottawa Holding Inc.
Hydro Ottawa Holding Inc., through its subsidiaries, maintains one of the safest, most reliable and cost-effective electricity distribution systems in Ontario. Hydro Ottawa currently serves 291,000 homes and businesses in the Ottawa area and operates some of the greenest and most environmentally friendly power generating stations in Canada. It owns and operates two subsidiaries: Hydro Ottawa Limited and Energy Ottawa Inc. Hydro Ottawa Holding Inc. is wholly owned by the City of Ottawa.
About Streetlight Intelligence Inc.
Streetlight Intelligence Inc. develops advanced street light optimization systems - and was recently recognized as the "New Technology of the Year" at the British Columbia Hydro 2009 Power Smart Excellence Awards. Trademarked as Lumen IQ™, SLQ's technologies provide improved lamp performance, adaptive lighting control, and system-wide communications for centralized street light management. SLQ's systems enable street light operators to significantly reduce their community's energy consumption, maintenance costs and environmental impact. SLQ is a public company listed on the TSX Venture Exchange under the symbol SLQ". For more information, visit www.StreetlightIQ.com
Video Describing Streetlight Intelligence Technology: http://www.youtube.com/watch?v=FVBPik5Rp48