Orbite TechnologiesInc. said April 27 that the government of Quebec has agreed to providethe company with C$15 million in funding, with Investissement Québec acting as the government's mandatory.

Previously in March, the company scaled down construction of its high-purity alumina plantin Cap-Chat, Quebec,due to the lack of financing.

The company intends to use the funds to "reaccelerate"its activities to complete the high-purity alumina plant.

The financing is expected to comprise the purchase of 10% convertiblenon-secured debentures in the principal amount of C$5 million, purchase of the company'sclass A shares for C$5 million, and grant of a C$4.9 million bridge loan.

Each C$1,000 unsecured debenture will mature five years fromthe closing date and will bear interest at a rate of 10% per annum payable monthly.

Each debenture will be convertible, at the option of the holderat any time prior to the maturity date, into class A shares of the company at 24.1Canadian cents apiece.

The equity portion of the financing comprises the purchase of20,746,888 class A shares of Orbite at the same per share price.

The C$4.9 million bridge loan will bear interest at 3.5% overthe prevailing prime lending rate, which currently stands at 2.7%, payable monthly.The loan will be collateralized against the company's investment tax credits receivablesfor the 2016 financial.

Following the investment, Investissement Quebec will collectivelyown about 13% of Orbite's issued and outstanding shares.