Orbite announces $10 Million debenture financing

Orbite Aluminae Inc. announces that Crede Capital Group, LLC ("Crede") has completed, late this afternoon, an investment of $10,000,000 in the form of convertible debentures and warrants pursuant to the exercise of the Series X Subscription Rights (the "Subscription Rights"), as issued and announced on March 10, 2014.

"The funds from this placement will go towards the completion of our 3 tpd HPA facility. We continue to be well on schedule towards commissioning at the end of the year, with commercial production commencing in the first quarter of 2015," stated Glenn Kelly, CEO of Orbite.

Under the placement, Crede has purchased units of the Company consisting of $10,000,000 principal amount of convertible unsecured debentures (the "Debentures") and 13,000,000 warrants (the "Warrants") of the Company. The Debentures will mature five years from issuance, namely July 11, 2019 and will bear interest at a rate of 7.5% per annum (the "Interest"). Each Debenture will be convertible, at the option of the holder, at any time prior to the maturity date, into class A shares of the Company ("Shares") at a conversion price of $0.50 per Share (the "Conversion Price"), representing the 5 day VWAP at time of the conditional exercise of the Series X subscription rights. Upon conversion, the holder shall also be entitled to Shares equal to the additional interest such holder would have received if it had held the Debenture until maturity divided by the market price of the Shares prior to the date of conversion (the "Make-Whole Amount"), in addition to accrued and unpaid Interest, in cash or in Shares at the Company's discretion. Each Warrant shall entitle the holder to purchase one Share for a period of three years from its issuance at a price of $0.60 per share (equivalent to the Conversion Price plus a 20% premium).