EEStor Corporation to restructure its debt to its director

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TORONTO, Dec. 11 2019 (GLOBE NEWSWIRE) – EEStor Corporation (TSX.V: “ESU-V”) (“EEStor“or the”company“), Is pleased to announce that it has entered into an agreement with Robert Tocchio, director of the Company, to restructure an existing bridge loan (the”Bridge loan“) previously provided by Mr. Tocchio. Including accrued but unpaid interest, $ 316,500 is currently owed by the Company under the bridge loan. The bridge loan was scheduled to mature on January 21, 2020 and is secured by a pledge of all of the outstanding share capital of ZENN Capital Inc., a wholly owned subsidiary of the Company.

In full and final settlement of the bridge loan, Mr. Tocchio agreed to accept an unsecured convertible debenture (the “Debenture”) With a capital of $ 316,500 and 6,330,000 detachable common share purchase warrants (the“Detachable mandates“). The debenture will bear interest at the rate of six percent per annum, payable annually, and will have a term of sixty months. At the option of Mr. Tocchio, all or part of the capital of the debenture may be converted into common shares of the Company, at a price of $ 0.05 per share during the first twelve months of the term, and at a price $ 0.10 per share for the remainder of the term. The detachable warrants will be exercisable at a price of $ 0.05 per share for a period of sixty months.

After the issuance of the debenture and the detachable warrants, Mr. Tocchio will release all obligations due and owed by the company with respect to the bridge loan, as well as all guarantees securing the bridge loan. The debenture and the detachable warrants will be subject to a statutory hold period of four months and one day in accordance with applicable securities laws and the policies of the TSX Venture Exchange. The completion of the issuance of the debenture and the detachable warrants, as well as the restructuring of the bridge loan, remain subject to the approval of the TSX Venture Exchange and cannot be completed until such approval. not been obtained.

Since Mr. Tocchio is a director of the Company, the issuance of the debenture and the detachable warrants, as well as the restructuring of the bridge loan, are considered a “related party transaction” within the meaning of Multilateral Standard 61. -101 – Protection of holders of minority securities in special transactions (“MI 61-101“). The Company avails itself of the exemption from the valuation requirement under section 5.5 (b) of NI 61-101, on the grounds that the Company’s shares are not listed on a specified market, and of exemption from minority shareholder approval under section 5.7 (1) (a) of NI 61-101, given that the fair market value of the consideration for the debenture and the detachable warrants does not exceed twenty-five percent of the Company’s market capitalization.

About EEStor

EEStor is a developer of high energy density semiconductor capacitor technologies using the company’s patented composition-modified barium titanate (CMBT) material. The Company is focused on licensing opportunities for its technology in a wide range of industries and applications.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

All statements, other than statements of historical fact, contained in this press release, including, but not limited to (i) in general, or the paragraph “About EEStor” which primarily describes the outlook and the objectives of the Company, constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, and are based on expectations, estimates and projections at the time of this press release. Forward-looking statements are necessarily based on a number of estimates and assumptions which, although considered reasonable by the Company at the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be inaccurate.

Many of these uncertainties and contingencies can directly or indirectly affect, and could cause actual results to differ materially from those expressed or implied in forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans for the future. The Company disclaims any intention or obligation to update or revise any forward-looking statement or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

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