ECTI Announces Partial Revocation Order and Proposed Private Placement

Toronto, Ontario--(Newsfile Corp. - November 26, 2019) - Energy Conversion Technologies Inc. ("ECTI" or the "Company") is pleased to announce that it intends to complete a non-brokered private placement of up to 1,250,000 common shares in the capital of the Company ("Common Shares") at a price of $0.20 per Common Share (the "Offering Price"), for aggregate gross proceeds of up to $250,000 (the "Offering"). The Offering is proposed to be completed pursuant to a partial revocation order (the "Partial Revocation Order") issued by the Ontario Securities Commission ("OSC") on November 20, 2019. The Offering Price, which was determined by the Company for the purpose of completing the Offering, is limited to the Offering, and the Company may conduct one or more additional private placements of its securities at prices greater than the Offering Price, at such time in the future following the full revocation of the Cease Trade Order (as defined below), of which there is no guarantee.

The Partial Revocation Order partially revoked a cease trade order that was issued by the Director of the OSC against the Company on November 17, 2009 the "Cease Trade Order"). The Cease Trade Order was issued against the Company as a result of the Company failing to file certain outstanding continuous disclosure documents in a timely manner. The proceeds of the Offering will be applied towards the payment of outstanding fees owed to the Company's auditors and consultants, filing fees, accounting and bookkeeping fees, professional fees and general working capital. Completion of the Offering will allow the Company to prepare and file all outstanding continuous disclosure documents, including audited financial statements of the Company, with the applicable regulatory authorities. Once those filings have been completed, the Company expects to apply for a full revocation of the Cease Trade Order. Following completion of the Offering, the Company also expects to call a meeting of the Company's shareholders, the timing and details of which will be announced by the Company at a later date.

Each potential investor in the Offering will receive a copy of the Cease Trade Order and the Partial Revocation Order, and will be required to provide an acknowledgement to the Company that all of the Company's securities, including the Common Shares issued in connection with the Offering, will remain subject to the Cease Trade Order until the Cease Trade Order is fully revoked, and that the granting of the Partial Revocation Order does not guarantee the issuance of full revocation order in the future. In accordance with applicable securities legislation, all Common Shares issued pursuant to the Offering will be subject to a hold period of four months and a day from the closing date of the Offering. Further, Common Shares issued pursuant to the Offering may not be transferred until full revocation of the Cease Trade Order, of which there is no guarantee.

About ECTI

ECTI is engaged in the commercialization of its electric motor and controller technology as an advanced source of electric powered rotary motion producing a fixed ratio between motor input and product output speeds. ECTI's electric motor technology focuses on producing compact, energy-dense and optimized efficiency sources of rotational power.

On behalf of the Board of Directors

Ervin Weisz
President and CEO
T: 905 754-0050
E: eweisz@energyconversiontech.com

Cautionary Statements

This press release may contain forward-looking statements including, but not limited to, comments regarding (i) the timing and content of the Offering, (ii) the issuance, and if issued, the timing and content of, an order for the full revocation of the Cease Trade Order, and (ii) the Company's plans to conduct one or more future financings on a private placement basis, including the price at which securities of the Company may be offered in such financings. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statement.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/50140

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