Cleantek Industries closes business combination and reverse takeover

On October 29, 2021, Cleantek Industries Inc. ("Cleantek") announced the completion of its business combination with Raise Production Inc. ("Raise") to form "Cleantek Industries Inc." (the "Resulting Issuer").

The transaction was implemented through plan of arrangement under the Business Corporations Act (Alberta). Pursuant to the arrangement agreement dated July 12, 2021, the common shares of Raise were consolidated on the basis of one post-consolidation Raise share for every 58.3 pre-consolidation Raise shares, such that, after consolidation, the holders of Raise shares held an aggregate of 2,979,551 shares in the "Resulting Issuer."

The transaction constituted an arm's length "reverse takeover" of Raise pursuant to Policy 5.2 of the TSX Venture Exchange ("TSX-V"). In accordance with the TSXV's policies, the Resulting Issuer's shares will remain halted for trading until the TSXV issues the final bulletin in respect of the transaction. Trading of the shares is expected to commence on or about November 4, 2021 under the trading symbol "CTEK".

In connection with the transaction, Raise issued an aggregate of 18,600,047 shares in the Resulting Issuer to Cleantek securityholders at a deemed price of C$1.75 per Raise share. In addition, the 5,716,123 subscription receipts issued pursuant to the concurrent financing of Cleantek, which closed September 7, 2021 for aggregate gross proceeds of C$10.75 million, each converted into one unit of Cleantek, with each unit comprised of one Cleantek share and one half of one Cleantek share purchase warrant, and were subsequently exchanged for shares and share purchase warrants in the Resulting Issuer on a one-for-one basis pursuant to the transaction.

Further information can be found on Globe Newswire’s website.

Raise is an innovative oilfield service company focused on the production service sector, utilizing its proprietary products to enhance and increase ultimate production in both conventional and unconventional oil and gas wells. Its suite of patented pumping solutions, including HARP TM, REAL TM and HART TM, are effective at up to 90 degrees in order to maximize drawdown, pump efficiency and pump life.

Cleantek is a clean energy technology company focused on hydro-sustainability with operations across North America. It has developed and commercialized its patented wastewater dehydration technology, the ZeroE, which it rents to its customers for use at gas processing facilities and on drilling rigs. Cleantek's ZeroE technology separates wastewater into (i) clean water which is evaporated and returned to the natural hydrological cycle and (ii) concentrated brine which is disposed of using traditional means. The ZeroE technology is powered by the waste heat generated from the engine exhaust of gas plants and drilling rigs.

Cleantek also has a suite of patented SolarHybrid and HALO lighting technology systems that service the energy, industrial, construction, and agricultural markets.