exactEarth Announces Conversion of 2023 Debentures

CAMBRIDGE, ON, Feb. 8, 2021 /CNW/ - exactEarth Ltd. ("the Company") (TSX: XCT), a leading provider of Satellite-AIS data services, announces that the holders of the Company's $13 million principal amount of outstanding convertible unsecured subordinated debentures due December 13, 2023 (the "Debentures") have given notice to the Company that they are converting the Debentures.

In connection with conversion, the Company is issuing 2,000 common shares for each $1,000 principal amount of Debentures resulting in an aggregate of 26 million Common Shares issued in satisfaction of $13 million principal amount. As provided in the terms of the Debentures, the Company has elected to satisfy accrued and unpaid interest on the Debentures through the issue of Common Shares at a price equivalent to $1.2597 per common share. The accrued and unpaid interest as of the Conversion Date is $1,725,260 resulting in the issue of 1,369,585 common shares. An aggregate of 27,369,585 common shares will be issued in connection with the conversion of the Debentures and the satisfaction of the accrued and unpaid interest thereon. Following the conversion and satisfaction of the Debentures, the Company will have 49,418,225 common shares outstanding on a non-diluted basis and 53,297,591 on a fully-diluted basis.

"We are pleased to have these debentures converted to equity as it simplifies our capital structure, improves the leverage of the Company and eliminates the interest expense," said Peter Mabson, President and CEO of exactEarth. "Our outlook for 2021 is one of organic revenue growth and margin expansion, and looking longer-term, we have a solid financial foundation from which to pursue future growth opportunities in the global maritime information and data services markets."

About exactEarth Ltd.
exactEarth is a leading provider of global maritime vessel data for ship tracking and maritime situational awareness solutions. Since its formation in 2009, exactEarth has pioneered a powerful new method of maritime surveillance called Satellite AIS and has delivered to its clients a view of maritime behaviours across all regions of the world's oceans unrestricted by terrestrial limitations. exactEarth's second-generation constellation, exactView RT, securely relays satellite-detected AIS vessel signals from any location on the earth's surface to the ground in seconds – thus enabling global real-time vessel tracking. This unique capability consists of 58 advanced satellite payloads designed and built by L3Harris Technologies, Inc. under agreement with exactEarth and that are hosted onboard the Iridium NEXT constellation of satellites. www.exactearth.com

Forward-Looking Statements
This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements may include financial and other projections, as well as statements regarding exactEarth's future plans, anticipated actions taken by holders of convertible debentures, our ability to continue as a going concern, objectives or economic performance, or the assumptions underlying any of the foregoing, including statements regarding, among other things, expectations of actions taken by holders of convertible debentures and the impact of the conversion on the Company's momentum, customer and partner relationships and growth of recurring subscription revenue. exactEarth uses words such as "may", "would", "could", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by exactEarth in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors exactEarth believes are appropriate under the relevant circumstances. However, whether actual results and developments will conform to exactEarth's expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause exactEarth's actual results, historical financial statements, or future events to differ materially from those expressed or implied by the forward-looking statements contained in this news release. These factors include, without limitation: uncertainty in the global economic environment; fluctuations in currency exchange rates; delays in the purchasing decisions of exactEarth's customers; the competition exactEarth faces in its industry and/or marketplace; the further delayed launch of satellites, the anticipated benefits of the A&R SABA; the financial impact of the Myriota transaction; the impact of the COVID-19 pandemic on customers and the market generally, the reduced scope of significant existing contracts; and the possibility of technical, logistical or planning issues in connection with the deployment of exactEarth's products or services.

SOURCE exactEarth Ltd.

For further information: INVESTORS: Dave Mason, Investor Relations, Tel: +1 416-247-9652, investors@exactearth.com
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