CellCube Announces Fully Subscribed CDN $4 Million Private Placement

CellCube Energy Storage Systems (the "Company" or "CellCube") (CSE: CUBE) (OTCQB: CECBF) (Frankfurt: 01X) is pleased to announce a fully subscribed non-brokered private placement financing. The Company is issuing 26,666,667 units (each, a "Unit") at a price of CDN $0.15 per Unit for gross proceeds of CDN $4 million (the "Offering"). Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant, each full purchase warrant exercisable into one common share of the Company at a price of $0.30 for a period of 36 months from closing. The Company has reserved the right to issue an additional $1,000,000 (6,666,667 Units) through an overallotment provision.

"CellCube is very pleased with the strong support received from its current shareholders on this financing," says Mike Neylan, CEO of CellCube. "The proceeds raised will support the ramp up of ongoing sales and continued commercialization of the vanadium flow battery storage systems. These funds and future revenue positions CellCube well into 2019 as larger projects come on stream."

All securities issued will be subject to a hold period expiring four months and a one day following closing. Subject to customary closing conditions, including Canadian Securities Exchange approval, the Offering is expected to close on or about October 31, 2018.

The Company has agreed to pay a 6.0% finders' fee on the gross proceeds raised by recognized finders pursuant to the Offering.

The Units are Eligible for Share Dividend and Distribution of the Planned Vanadium Spinout 

The common shares issued under the Offering will also be eligible to receive the share dividend to be distributed upon the spin-out of the Company's vanadium resource asset V23 Resource Corp. (see news release dated June 28, 2018).

CellCube has established a record date of Nov. 30, 2018 for the spinout of its 100-per-cent-owned Bisoni Mackay and Bisoni-Rio vanadium assets in Nevada into a newly formed company called V23 Resource Corp. ("V23") (see news release dated October 11, 2018).

CellCube shareholders of record owning common shares of the Company on Nov. 30, 2018, will be eligible to receive the distribution of one common share of V23 for every two common shares of CellCube upon completion of the spinout arrangement. CellCube intends to retain a 19.9-per-cent interest in V23, in addition to certain off-take rights and a net smelter royalty.

CellCube | www.cellcubeenergystorage.com