Kraken Awarded $0.6 Million Contract for Subsea Battery Solution for Military Customer
Recent Warrant Exercise Adds $0.9 Million to Cash
ST. JOHN’S, Newfoundland, April 24, 2019 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. (TSX-V: PNG) (OTCQB: KRKNF) (“Kraken” or the “Company”), is pleased to announce that its wholly owned subsidiary, Kraken Robotic Systems Inc., has been awarded a contract for approximately $600,000 by a military customer to provide a high capacity battery solution for an underwater robotics application. For confidentiality reasons, the customer name will not be disclosed. Product delivery is anticipated in Q2, 2019.
In addition, Kraken is pleased to announce that since the beginning of February, the Company has received approximately $935,000 from the exercise of warrants. These represent the remaining unexercised warrants that were part of a total of 5,903,330 warrants issued in connection with the Company’s private placement of units in April 2017. The warrants expired on April 10, 2019 and had an exercise price of $0.30. All of these warrants have now been exercised.
Karl Kenny, Kraken's President & CEO said, "We are finding that our military customers appreciate Kraken’s ability to rapidly deliver advanced subsea power solutions for new and existing underwater vehicles at honest pricing. We see a viable market in replacing OEM batteries, which have reached the end of their useful life, with our next generation SeaPower™ batteries that provide significantly increased capacity at a lower cost. Increased capacity directly correlates to increased mission duration, which is paramount, especially to deep-sea rated vehicles. Most batteries in today’s underwater vehicles were designed over 10 years ago and are larger and heavier than modern day technology. Kraken has leveraged the rapid growth of the global electric vehicle market to bring safe, efficient, and affordable subsea power solutions to the maritime industry.”
Kraken’s batteries are pressure-tolerant systems in which the individual components are embedded in flexible polymers. The assemblies are cast with a proprietary vacuum technology enabling the components to work in a deep-sea environment. In deep water, undersea systems are exposed to extremely high pressures. Conventional systems with components housed in pressure chambers are typically large, heavy and expensive for any depths past a few hundred metres due to the requirements of strength, seal tightness, and corrosion resistance.
Kraken Power GmbH has developed an alternative to traditional pressure housings with its own pressure-tolerant technology. Pressure-tolerant systems work in a manner similar to pressure-compensated systems in which the components are exposed to hydrostatic pressure. However, the compensation liquid is replaced by incompressible elastomers such as silicone or polyurethane. As a result, the volume compensation requirement by liquid is no longer necessary, i.e. an oil compensator is no longer required. A proprietary vacuum technique enables the encapsulating polymers to be used at depths to 6000 metres.
Pressure-tolerant systems have a lower specific weight and a smaller volume in comparison to pressure or oil-compensated systems. They are corrosion resistant, require less maintenance and are thus cheaper to maintain.
Kraken Power GmbH has been working with this technology for many years, and through its acquired know-how, can now offer a variety of pressure-tolerant products and solutions for deep-sea applications and vehicles.
Kraken Robotics Inc. (TSX.V:PNG) (OTCQB: KRKNF) is a marine technology company that is dedicated to the production and sale of software-centric sensors and underwater robotic systems. The company is headquartered in St. John’s, Newfoundland with offices in Dartmouth, Nova Scotia; Toronto, Ontario; Bremen and Rostock, Germany; and Boston, Massachusetts. Kraken is ranked as a Top 100 marine technology company by Marine Technology Reporter. For more information, please visit www.krakenrobotics.com, www.krakenrobotik.de, www.krakenpower.de. Find us on social media on Twitter (@krakenrobotics), Facebook (@krakenroboticsinc) and LinkedIn.
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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For further information, please contact:
Greg Reid, Chief Financial Officer
Sean Peasgood, Investor Relations
Glenda Leyte, Marketing Manager
(709) 757-5757 extension 288