Smartcool Provides Business Update

May 10, 2020

Smartcool Systems Inc. (TSX.V:SSC; OTC:SSCFF; FSE:R3W) (“Smartcool” or the “Company”) is pleased to provide the following update with particular attention to the impact on the company of the coronavirus pandemic. The company’s highest priority is to keep its employees safe during the course of the pandemic. Operating in three locations, an office in the UK, an office in Minnesota and a virtual office in Vancouver, we have been able to maintain operations while working remotely. While many of our existing customers have restricted our ability to complete installations, staff have kept busy focussing on new opportunities. Many proposals have been put forward at the request of clients, anticipating installations when the lockdowns are relaxed. 

While it has been challenging to cover all the company’s current operating costs, government programs in the three jurisdictions of the UK, the US and Canada have provided enough cash flow to cover most wages and necessary operating expenses. In an effort to streamline the company’s overheads, salaries and consulting agreements have been modified to provide a reduction in monthly costs. Aggregate monthly savings as a result of these changes, amount to approximately $30,000 per month. When the economy begins to recover, the income of the company, should generate profitability very rapidly.

We anticipate that as the economy reopens, a greater interest will exist for operating efficiencies. Our company should benefit from this new focus.              

About Smartcool

Smartcool Systems Inc. provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world. The ECO3 and ESM are Smartcool’s unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by up to 40%.

 Total Energy Concepts (TEC), a wholly owned subsidiary of Smartcool, is a national leader in Power Protection, Energy Management, Power Quality, Facility Grounding, and Lighting Solutions that help companies improve their bottom line by reducing expenses that drastically cut into company profits. TEC focuses on a holistic approach to energy efficiency with proprietary technologies for power factor correction and third-party technologies including LED, voltage conditioning and intelligent motor controls.

For more information please www.smartcool.net and www.totalenergyconcepts.com 

Investor Inquiries

Mike Kordysz

Vice President, Business Development

TEL +1 604 904 8632 EMAIL mike.kordysz@smartcool.net 

Legal Notice Regarding Forward Looking Statements

This news release contains “forward looking statements”.  Forward-looking statements are projections of financial performance or future events.  Forward-looking statements can be identified by the use of words such as “expect”, “anticipate”, “intend”, “plan”, “believe”, “estimate” and words of similar meaning.  Forward-looking statements are based on management’s current expectations and assumptions and they are subject to risks that may cause actual results to differ materially from those expressed or implied by such forward looking statements. Forward-looking statements in this news release include those concerning the company’s belief in the energy savings that can be achieved through installation of the Company’s products and that these installations lead to reduced maintenance, downtime expenses, future cost savings, and improvements in the bottom line, as well as the Company’s anticipation that the audit of its financial statements for the year ended December 31, 2018 and its other delinquent periodic disclosure documents will be completed and filed shortly.  These statements are subject to risks that may cause the actual results to be materially different in future periods from those expressed or implied by such forward looking statements.  Risks that may prevent or delay the forward-looking statements from coming to fruition as anticipated include the availability of working capital, risks inherent in product development, as well as market factors that may increase costs or time to market.  It is our policy not to update forward looking statements except to the extent required under applicable securities laws. Further information on the Company is available at www.sedar.com or at the Company’s website, www.smartcool.net. 

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.