China Keli Announces Bridge Loan and Proposed Sale of Shares by Control Block Holders

Vancouver, British Columbia--(Newsfile Corp. - December 2, 2020) -  China Keli Electric Company Ltd. (TSXV: ZKL.H) (the "Company"), announces today that it has entered into a $200,000 bridge loan (the "Loan"). The Loan bears interest at 2.5% per month, and matures on February 28, 2021. If the Loan is not repaid on maturity, the lender may, at their option, and subject to NEX approval, convert the amounts outstanding under the Loan into common shares of the Company at $0.05 per share.

The Company will use the proceeds of the Loan to bring the Company's continuous disclosure up to date, apply for a full revocation of the cease trade order outstanding against the Company (the "CTO"), and pay the Company's outstanding accounts. The Company has applied for and received from the British Columbia Securities Commission a partial revocation of the outstanding CTO to permit the Loan.

The Company also announces today that Madam Sou Wa Wong and Mr. Lou Meng Cheong have entered into agreements to sell 35,440,000 and 22,560,000 shares of the Company respectively. The shares to be sold by Madam Wong and Mr. Cheong represent 39.2% and 24.7% of the issued and outstanding shares of the Company respectively. The share sales do not, by definition, constitute a "take-over bid" set forth in Multilateral Instrument 62-104 Take-Over Bids and Insider Bids on the basis that none of the sellers and purchasers are resident in Canada. Completion of the share sales are subject to, among other things, the full revocation of the CTO and the approval of the NEX.

For further information, please contact:

CHINA KELI ELECTRIC COMPANY LTD.

Philip Lo, Chief Financial Officer
Tel. No.: (86) 13632 173732
Email: philip@zkl.cc

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 press release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/69395

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