OPEL Technologies nixes C$10 million line of credit with Kodiak

Unused financing would have funded growth and expansion plans, R&D

By Angela McDaniels

Tacoma, Wash., Jan. 11 - OPEL Technologies Inc. terminated its unused C$10 million equity line of credit with Kodiak Capital Group, LLC. The financing arrangement was announced on Sept. 29.

The company decided that the two-year financing, which was never completed, was not in the best interests of the company or its shareholders, according to a company news release.

Under the arrangement, Kodiak Capital agreed to purchase shares at a 10% discount to the market price on the five consecutive trading days immediately after OPEL Technologies delivered a drawdown notice.

The amount of each drawdown would have been the greater of C$1 million and up to 200% of the average daily volume (U.S. market only) multiplied by the average daily trading volume of the company's shares for the three trading days prior to the drawdown notice.

The company had agreed to issue to Kodiak 2.5% of the facility amount upon the issuance of a receipt for a final prospectus to the company and 2.5% of the facility amount at the time of the first drawdown.

The company planned to use the funds for its growth and expansion plans, to meet its contractual obligations and for research and development.

OPEL Technologies makes dual- and single-axis trackers and high-concentration photovoltaic panels through OPEL Solar, Inc. and designs III-V semiconductor devices through ODIS Inc. It is based in Toronto and has operations in Shelton, Conn.

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