China Keli Announces Completion of Non-Brokered Private Placement and Shares for Debt Transaction

Vancouver, British Columbia--(Newsfile Corp. - August 6, 2021) - China Keli Electric Company Ltd. (TSXV: ZKL.H) (the "Company" or "China Keli") is pleased to announce it has completed its previously announced non-brokered private placement (the "Private Placement"). The Private Placement was fully subscribed, and the Company issued 4,347,826 common shares at $0.23 per share for aggregate gross proceeds of $1,000,000 (the "Private Placement"). One insider of the Company subscribed for 50,000 shares. The Company will pay a finder's fee of $52,418.80 in connection with the Private Placement.

Proceeds of the Private Placement will be used to settle the principal and interest on the Company's $200,000 bridge loan, maintain and bring up to date the Company's continuous disclosure record, pay outstanding accounts and invoices, and provide the Company with working capital to seek new business opportunities.

In addition, the Company announces that it has settled $745,531 of the Company's outstanding debt (the "Debt") with certain creditors of the Company. The Debt arose from advances to the Company from the Company's prior control block shareholders, who assigned the Debt to the current creditors in February 2021. The debt settlement resulted in the issuance of 3,241,439 common shares at a price of $0.23 per share, in full and final satisfaction of the Company's obligations to such creditors (collectively, the "Shares for Debt Transaction").

Following the Private Placement and the Shares for the Debt Transaction, the Company's issued and outstanding capital is now 12,110,026 common shares.

No new insiders or control persons resulted from the Private Placement and/or Shares for Debt Transaction.

Shares issued pursuant to the Private Placement and the Shares for Debt Transaction are subject to a four month hold period expiring December 6, 2021.

Forward Looking Statements

This press release may contain forward-looking statements based on the Company's current expectations and assumptions as to a number of factors including regulatory approval. If those expectations and assumptions prove to be incorrect, or factors change, then actual results could differ materially from the forward-looking statements contained in this press release.

Generally, statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control, including changes in laws and regulations including changes in how they are interpreted and enforced, and obtaining required approvals of regulatory authorities. Therefore the Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements will transpire or occur, or if any of them do so, what benefits, the Company will derive therefrom. Such statements are based on assumptions made by the Company based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.

For further information, please contact:

CHINA KELI ELECTRIC COMPANY LTD.

Philip Lo, Chief Executive 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/92278

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