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Ocean Infinity purchases a stake in Kraken Robotics Inc.

Ocean Infinity is pleased to have completed the purchase of a stake in Kraken Robotics Inc.

Ocean Infinity (the “Offering”) will acquire 11,520,000 units (the “Units”) in Kraken which, upon completion, will result in Ocean Infinity owning 9.99% of Kraken’s issued common shares. Kraken’s relationship with Ocean Infinity started in 2017 and this investment in Kraken forms the starting point for the expansion of this relationship. In this light, Kraken and Ocean Infinity are working towards negotiating the terms of a strategic alliance to promote more closely aligned cooperation in maritime robotics technology, products, and services moving forward.

Private Placement Details

Pursuant to the Offering, the Company will issue 11,520,000 Units at a price of C$0.20 per Unit. Each Unit will consist of one common share and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”), with each Warrant exercisable to acquire one common share of Kraken at C$0.40 for a period of 36 months from the date of issuance, subject to adjustment and acceleration. All shares issued under the Offering will be subject to a four month hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada. In addition, Ocean Infinity has agreed to an additional 32 month hold period resulting in a combined 36 month hold period. All proceeds raised from the sale of the Units will be used by Kraken for the build of inventory and general corporate and working capital purposes.

The Warrants are subject to an acceleration clause whereby if the closing trading price of the common shares is greater than $0.50 for 20 consecutive trading days after the date that is four months and a day after the closing of the Offering, Kraken may, at its option, elect to accelerate the expiry date of the Warrants to 20 calendar days following the delivery of a written acceleration notice.

Closing of the Offering is expected to occur later in June 2018 and remains subject to receipt of the approval of the TSX Venture Exchange.

Kraken CEO Comments

Karl Kenny, Kraken’s President and CEO, said, “Today’s announcement of an investment by industry innovator Ocean Infinity is yet another solid step in our journey to build our maritime robotics platform. We are excited to partner with Ocean Infinity, a current customer, as we focus our combined energies serving a broader range of customers with industry-leading solutions. Ocean Infinity has clearly demonstrated their ability to apply their considerable resources and expertise not only to enter, but to transform the ocean survey and exploration industry.”

Ocean Infinity CEO Comments

Oliver Plunkett, Ocean Infinity’s President and CEO, said, “At Ocean Infinity, we work diligently to understand our customers’ needs and invest in innovation to ensure success. The relationship with Kraken represents a powerful opportunity to develop important new sensor, system and data analytics capabilities for our industry.”

About the Kraken/Ocean Relationship

Since the fall of 2017 Kraken has made two announcements involving Ocean Infinity, a next generation company in the ocean survey and ocean exploration market:

Building upon this relationship, Kraken and Ocean Infinity are working to formalize their collaboration and are currently working on a non-binding memorandum of understanding to this end.