Data Watts Signs Binding Letter of Intent to Acquire Interest in Clean Energy Project
Executive Summary
- Data Watts Partners Inc. entered into a binding LOI to invest approximately US$100,000 and C$649,620 in Kanata Clean Power & Climate Technologies Corp. and Kanata Alberta Investment One Holding Corp.
- The investment provides Data Watts with an indirect interest in a First Nations‑co‑founded decarbonisation company developing low‑carbon hydrogen, ammonia, and sovereign AI solutions for clean‑energy data centers.
- Subscription terms include 40,000 Class A Voting Common Shares of Kanata Technologies at US$2.50 per share and 1,000 Common Shares of Kanata Holding in exchange for 700,000 Data Watts shares plus a non‑interest‑bearing promissory note; the latter are subject to a 12‑month hold period.
Key Details
- Investment Structure
- Kanata Technologies (KT) Shares: 40,000 Class A Voting Common Shares at US$2.50 per share = US$100,000 total.
- Initial subscription on LOI signing: 10,000 shares for US$25,000.
- Remaining 30,000 shares to be subscribed upon closing of the investment for US$75,000.
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Kanata Holding (KH) Shares: 1,000 Common Shares issued in exchange for 700,000 Data Watts shares (the “Consideration Shares”) and a C$649,620 non‑interest‑bearing promissory note.
- Consideration Shares are subject to a 12‑month contractual hold period.
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Payment Schedule
- Cash payment of US$25,000 at LOI signing for the initial KT share subscription.
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Remaining cash (US$75,000) and issuance of KH shares plus promissory note payable upon closing of the investment.
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Strategic Rationale
- Provides Data Watts indirect exposure to a First Nations‑co‑founded clean‑energy venture focused on low‑carbon hydrogen, ammonia, and AI‑driven solutions for data centers.
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Aligns with Data Watts’ investment philosophy emphasizing clean energy, AI applications, and sovereign technology platforms.
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Future Steps
- Parties will negotiate in good faith to replace the LOI with a definitive agreement.
- Additional details on specific projects, expected revenues, and timing will be disclosed after execution of the definitive agreement.
Notable Quotes
“Powering Data Centers and supporting global electrification with clean energy solutions is a key focus of Data Watts,” commented Ron Loborec, CEO of Data Watts.
“The intellectual property, projects and talent we found at Kanata Technologies are second to none… We are excited to work with their team and support First Nations involvement in all aspects of development.”