OneRoof Energy Group, Inc. Announces Closing of Final Tranche of Non-Convertible Note Financing

SAN DIEGO, Oct. 9, 2015 /CNW/ -- OneRoof Energy, Inc. ("OneRoof" or the "Company"), a residential solar services provider and wholly owned subsidiary of OneRoof Energy Group, Inc. ("OneRoof Energy") (TSXV: ON) today announced that the Company and OneRoof Energy have issued a secured non-convertible note (the "Note") in the principal amount of US$1,500,000 to Black Coral Capital, LLC ("Black Coral"), a current investor in OneRoof Energy, in the final tranche of a previously announced financing with Black Coral in the aggregate principal amount of US$4,500,000, funded in tranches.  The Note is issued on the same terms and is part of the same series as the notes previously announced in the press release dated September 24, 2015; certain of such terms are described in more detail below.

The Note is secured by the assets of the Company that are not otherwise pledged under project financings (the "Available Assets").  The Available Assets are already pledged as security under the Company's senior credit agreement with North Sky Alliance Fund and NewWorld Environmental Infrastructure L.P., as well as the Company's subordinated convertible notes.   

The Note has an interest rate of sixteen percent per annum compounded monthly and computed on the actual number of days elapsed until all of the amounts due under the Note has been paid in full and a year of 365 days. The Company will pay interest on overdue principal and on overdue installments of interest, from the date due until such time as actually paid at the applicable rate plus two percent per annum. The Note also has a $500,000 prepayment penalty. The Note requires the repayment of principal and interest and do not require ongoing servicing.  Amounts outstanding at maturity will be repaid in cash generated from operations or through refinancing, depending on the terms available at the end of the term of the loan.

The proceeds from the Note will be used for general working capital purposes, including general and administrative, IT development and investment in solar projects.

About OneRoof Energy

OneRoof Energy, Inc., a  wholly-owned subsidiary of OneRoof Energy Group, Inc., is a complete solar services provider offering homeowners everything from traditional and lease financing, PPAs, solar system design and installation project management to ongoing system monitoring and maintenance services. Utilizing its technology-rich, solar leasing fulfillment platform, OneRoof is partnering with traditional residential solar originators, energy retailers and home services companies of all sizes to offer residential customers affordable, renewable energy choices.   With its unique end-to-end energy solution, the Company has created multiple touch points to offer cost-saving energy products and services that create a seamless experience for the homeowner while fulfilling their unique energy needs.  Currently, OneRoof serves residential customers in eight states including Arizona, California, Hawaii, Massachusetts, New Jersey, Maryland, Connecticut and New York with plans for additional expansion. For more information, visit www.oneroofenergy.com. 

Caution Regarding Forward-Looking Information

Certain statements contained in this document, are "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is necessarily based on a certain number of estimates and assumptions, which while considered plausible by the management when they are made, are inherently subject to significant commercial, economic and competitive risks and uncertainties. We advise investors not to rely unduly on forward-looking information. The Company further declines any intention or obligation to publicly update this forward-looking information, whether due to new information, or future or other events, unless required by applicable law.

Neither the TSX Venture Exchange nor its regulation service provider (as these terms are defined in policies of the TSX Venture Exchange) bears responsibility for the adequacy or accuracy of this press release.

Investor Relations Contacts:
Dan Halvorson
Executive Vice President & CFO
OneRoof Energy Group, Inc.
858-926-7660 (Direct)
[email protected]

Karen Fisher
Vice President, Investor Relations & Compliance
OneRoof Energy Group, Inc.
858-926-7541 (Direct)
[email protected]

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SOURCE OneRoof Energy, Inc.