UGE Announces Closing of Private Placement of Units

Toronto, Ontario--(Newsfile Corp. - December 23, 2020) - UGE International Ltd. (TSXV: UGE) (the "Company" or "UGE"), a leader in commercial and community solar energy solutions, is pleased to announce that it has completed the previously announced non-brokered private placement of 908,155 units ("Units"), with each such Unit consisting of one common share in the capital of the Company (the "Common Shares") and half of one common share purchase warrant (each whole warrant, a "Unit Warrant"), at an issuance price of $1.80 per Unit, for aggregate gross proceeds of $1,634,679.00 (the "Offering").

"We thank the investors and insiders who participated in UGE's private placement for their continued support of the Company's vision to scale our business in the lucrative and growing community solar industry," said UGE CEO, Nick Blitterswyk. "We finish the year with a strong balance sheet to work through our project backlog, which is now approximately four-times larger than what we had at the start of 2020. We anticipate further project backlog growth in 2021, especially given U.S. Congress's passing of an extension of the solar investment tax credit. We look forward to continuing to execute on our strategy in 2021."

Each Unit Warrant entitles the holder to purchase one Common Share at an exercise price of $2.40 per share for a period of 18 months from the date of issuance. The Unit Warrants automatically accelerate their expiry in the event the trading price of the Common Shares on the TSX Venture Exchange equals or exceeds $3.00 for ten (10) consecutive trading days. Certain finders of purchasers in the Offering received a cash commission equal to 5% of the gross proceeds from subscribers sourced by such finders as well finder's warrants (the "Finder's Warrants") equal to 5% the number of Units sourced by such finders, resulting in the payment by the Company of $47,790 and the issuance of 26,550 Finder's Warrants. Each Finder's Warrant entitles the holder thereof to purchase one Common Share of the Company at an exercise price of $1.80 per share for a period of 24 months from the date of issuance.

All of the securities issued by the Company pursuant to the Offering are subject to a hold period equal to four months and one day from the date of issuance.

Extension of Investment Tax Credit

The Company views positively the recently announced two-year investment tax credit extension for solar projects, passed alongside the COVID stimulus measures in the United States. Prior to the two-year 26% extension, the Company had assumed rates of 22% for 2021 and 10% for 2022, as was previously scheduled. A stronger tax credit environment further improves the viability of commercial and community solar systems throughout the USA.

Grant of Options

The Company has also issued 100,000 options to Tyler Adkins in relation to his appointment earlier this month as the Company's Chief Revenue Officer. The options have a five-year term and a strike price of $1.80, the five-day VWAP on the day the grant was approved by the board of directors.

About UGE
UGE delivers immediate savings to businesses through the low cost of solar energy. We help commercial and industrial clients become more competitive by providing low cost distributed renewable energy solutions at no upfront cost and maximum long-term benefit. With over 400MW of global experience, we work daily to power a more sustainable world. Visit us at www.ugei.com.

For more information, contact UGE at:
+1 917 720 5685
investors@ugei.com

Neither 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.

Statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for UGE's products and the availability of funding. These forward-looking statements are made as of the date hereof and UGE does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from UGE's expectations and projections.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/70893

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