Kraken Acquires Remaining 25% of Kraken Power
Kraken Power Adds Industry Leading Battery and Thruster Technology
St. JOHN’S, NEWFOUNDLAND – 17 DECEMBER 2019 /GLOBE NEWSWIRE/ – Kraken Robotics Inc. (TSX-V: PNG) (OTCQB: KRKNF) (“Kraken” or the “Company”), is pleased to announce that it has reached an agreement with the minority shareholder of Kraken Power GmbH (“Kraken Power”), to acquire the remaining 25% of Kraken Power not currently owned by Kraken (the “Transaction”). Consideration for the Transaction will be €350,000, consisting of €250,000 in cash and the issuance of 236,258 common shares of the Company at a deemed price of $0.62 per share, representing the Canadian dollar equivalent of €100,000 (the “Consideration Shares”). The issuance of the Consideration Shares requires the approval of the TSX Venture Exchange, and such Consideration Shares are subject to a four-month statutory hold period commencing on the date of issuance. The Transaction is expected to close by December 31, 2019. Completion of the Transaction will trigger a change of control payment to an arm’s length third-party lender to Kraken Power in an amount equal to €120,000 payable in two tranches of €60,000 over calendar 2020 for which Kraken will be responsible.
Karl Kenny, Kraken’s President and CEO, said: “We are extremely pleased to have Kraken Power as a wholly owned subsidiary. The team at Kraken Power have worked very well with Kraken’s Canadian team and together we have made significant strides in scaling Kraken Power since we made our original investment in April 2017. Recent testing milestones of greater than 100 hours endurance for Kraken Power’s pressure tolerant batteries without recharging on Ocean Infinity’s Hugin AUVs was an industry leading result and a major achievement for Ocean Infinity and the Kraken team. On the thruster front, we are excited to grow Kraken’s thruster product sales in the coming years, with a recent partnership with Norway’s MPI initially focused on robotic net cleaners for the aquaculture industry. We look forward to continued growth in Kraken Power’s pressure tolerant batteries and thruster products with a variety of commercial and defense market customers.”
ABOUT SUBSEA BATTERIES & ENERGY STORAGE
The subsea battery and energy storage market will see continued growth from a variety of existing and emerging applications including manned and unmanned underwater vehicles and remotely operated vehicles, deep sea oil and gas infrastructure, seabed energy storage systems, and seabed recharging stations. Customers for these applications range from military and defense companies to commercial operators such as oil and gas and offshore renewable energy companies, as well as governments and industry doing scientific research.
