VANCOUVER, BC / September 13, 2019 / MGX Renewables Inc. (“MGXR” or the “Company”) is pleased to announce that it has arranged a non-brokered private placement (the “Private Placement”) for total gross proceeds of up to $3,000,000. The Private Placement will consist of up to 14,285,714 units at price of $0.21 per unit (each a “Unit”).
Each Unit shall consist of one (1) common share and one transferable share purchase warrant (each a “Warrant”). The Warrants are exercisable for a period of two (2) years at a price of $0.25 in the first year from the date of issuance and at a price of $0.40 for the balance of the term.
The Company may pay finder’s fees in conjunction with the Private Placement as permitted by applicable securities laws and the rules of the CSE. All securities issued in respect of the Private Placement will be subject to a hold period of four (4) months and a day from closing of the Private Placement in accordance with securities laws.
The proceeds of the Private Placement will be used for general working capital. The Private Placement is subject to the Company’s filing requirements with the Canadian Securities Exchange.
The Company is also pleased to announce the grant of up to 4,688,000 incentive stock options (the “Options”) to directors, officers, employees and consultants of the Company. Each Option shall permit the holder thereof to purchase one common share at a price of $0.21 per share up to the earlier of five (5) years from the date of the grant and the termination of the Options in accordance with the terms of the MGXR stock option plan and the policies of the CSE. All Options granted shall vest immediately. Additionally, the proposed grant of the Options on the terms described above shall replace the previously announced but unissued incentive stock options described in the Company’s news release dated July 19, 2019. The options announced in the July 19, 2019 news release did not proceed.
MGXR Energy Storage System
The MGXR ESS is a modular Energy Storage System designed to deliver power in the range 20kW - 50MW and energy storage in the range of 120kWh - 1GWh over extended periods of time. With the advantage of rechargeable zinc-air battery technology, the system can be configured to support a wide range of discharge power, recharge power and duty cycle requirements. Since the energy storage capacity of the system is determined only by the size of the zinc storage tank, a very cost-effective and scalable solution now exists as an alternative to the fixed power/energy ratio of the lithium ion battery.
The MGXR ESS is based upon unique patented zinc-air battery technology. Energy is stored in the form of zinc particles, similar in size to grains of sand. When the system is delivering power, the zinc particles are combined with oxygen drawn from the surrounding air. When the system is recharging, zinc particles are regenerated, and oxygen is returned to the surrounding air.
The flexibility of the MGXR ESS enables it to service a wide range of applications. Typical examples include:
- Storage and smoothing current frequency from renewable energy sources such as wind and solar
- Commercial, industrial backup replacing diesel generators
- Industrial scale, on-demand power for peak shaving or standby
- Grid scale energy storage for energy trading and arbitrage
The MGXR ESS is designed according to a modular architecture that enables a wide variety of system configurations to be created from a small number of common subsystems. Each subsystem implements a single element of the technology:
- The Zinc Regeneration Subsystem (ZRS) provides the recharging function
- The Fuel Storage Subsystem (FSS) provides the energy storage function
- The Power Generation Subsystem (PGS) provides the discharging function