Phoenix, AZ, Dec. 20, 2019 (GLOBE NEWSWIRE) -- Pursuant to a 2019 Convertible Debenture Purchase Agreement between UniGen and InnSuites Hospitality Trust, a publicly traded (NYSE American: IHT) Ohio business trust (“IHT”) seeking diversification of its holdings, IHT has agreed to invest up to $1,500,000 or more in UniGen through(i) the purchase of a 6% $600,000 convertible Debenture; (ii) a 6% $400,000 convertible Debenture to close on February 1, 2020 (the “February Debenture” and, together, the “IHT Debentures”); (iii) the right to exercise a Class A Common Stock Purchase Warrant for 1,000,000 shares at $1.00 per share (the “IHT Warrants”); (iv) the right to exercise an additional Class A Common Stock Purchase Warrant for 200,000 shares, exercisable at $2.25 per share (the “Additional Warrants”); and (v) establishment of a convertible, 6% $500,000 line of credit (the “IHT LOC”) to support a stable cash flow for UniGen’s development of its UPI 1000NG electricity generating power technology that may be converted at $1.00 per share of up to 500,000 shares at the option of IHT.
IHT is not obligated to fund the IHT LOC if proceeds from an offering timely equal or exceed $1,000,000. IHT may fund up to $500,000 of the IHT LOC, at its option, if not fully used by UniGen. The IHT LOC is made available for a maximum of 24 months commencing on February 28, 2020 and terminating on February 28, 2022. If and when IHT funds the above Debentures and exercises the above warrants in full, IHT will hold 2,700,000 shares of Class A Common Stock representing approximately 29.35% of the issued and outstanding shares of the Class A Common Stock on a fully diluted basis prior to an offering and will have invested a total of $2,950,000 in UniGen. The UniGen Board of Directors (the “Board”) has acted to expand the Board to six directors and has named Marc Berg, IHT EVP and James Wirth, IHT CEO each a qualified nominee, to fill the vacancies on the Board created by such action as directors of the Company.
Unigen Power Inc. is a TEC International Group distributed energy company, established to design and manufacture revolutionary electric 1 million watt power generators that outperform incumbent technology by virtually every metric, expected to be in production within the next 2-3 years. Designed from inception to burn clean natural gas, UPI is the 21st century energy company breakthrough that provides environmentally friendly, decentralized power generation.
With the exception of historical information, the matters discussed in this news release may include “forward-looking statements” within the meaning of the federal securities laws. All statements regarding IHT’s review and exploration of potential strategic, operational, investment, and structural alternatives and expected associated costs and benefits are forward-looking. Actual developments and business decisions may differ materially from those expressed or implied by such forward-looking statements. Important factors, among others, that could cause IHT’s actual results and future actions to differ materially from those described in forward-looking statements include the uncertain outcome, impact, effects and results of IHT’s review of strategic, operational, investment, and structural alternatives, and the risks discussed in IHT’s SEC filings. Forward-looking statements are not guarantees of future performance due to numerous risks and uncertainties, such as: local, national or international economic and business conditions; competition, loss of membership contracts, and other factors. Such uncertainties, and others affecting IHT are described in greater detail in our filings with the Securities and Exchange Commission. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained. IHT expressly disclaims any obligation to update any forward-looking statement contained in this news release to reflect events or circumstances that may arise after the date hereof, all of which are expressly qualified by the foregoing, other than as required by applicable law.
FOR FURTHER INFORMATION:
Marc Berg, Executive Vice President