Delta CleanTech Inc. entered into asset purchase agreement to acquire Clean energy business of HTC Extraction Systems from HTC Purenergy Inc. (TSXV:HTC) for CAD4 million on January 27, 2021. The consideration will be paid by the issuance of 20 million common shares of Delta at a price of CAD0.20 per share. The Consideration Shares are subject to a pooling arrangement with a release schedule over a period of 24 months whereby 10% of the Consideration Shares will be released upon the listing of the Delta Shares on a recognized stock exchange in Canada, 10% of the Consideration Shares are released every three months following the date of the Liquidity Event, and the final 20% of the Consideration Shares are released 24 months following the date of the Liquidity Event. HTC will hold 34.3% of the Delta Shares on an undiluted basis and 25.8% of the Delta Shares on a fully diluted basis. The Clean Energy Assets consist of all the intellectual property and certain contractual agreements for the operation of HTC's CO2 capture systems and reclaimer systems. HTC will continue to hold assets, and will continue to operate the business, associated with its hemp segment. No finder's fees were payable in connection with the Asset Sale. The Asset Sale was conditional upon, among other things, the closing of the Financing.

Following the close of the acquisition Delta CleanTech completed the first tranche of a non-brokered private placement.

Delta CleanTech Inc. completed the acquisition of Clean energy business of HTC Extraction Systems from HTC Purenergy Inc. (TSXV:HTC) on January 27, 2021