Esstra Industries Inc. (TSXV:ESS) entered into a binding letter of intent to acquire a 5% equity interest in ExSorbtion Inc for $0.26 million on July 16, 2020. In conjunction with the investment the company will receive a license to utilize the technology on one lithium brine resource selected by Esstra. To maintain the license Esstra is required to pay to ExSorbtion, commencing in the third year after ExSorbtion demonstrates a fully functioning commercial pilot plant, a sliding scale royalty that starts at 5% of annual gross revenue until $2 million has been paid decreasing to 2% and continuing thereafter once $6 million has been paid. The license is also subject to the payment of minimum royalty payments commencing on the initial royalty payment date of $100,000 increasing by $50,000 each year thereafter until the sixth year. In a related transaction, subject to the approval of the TSX Venture Exchange, Esstra proposes to undertake a non-brokered private placement of 1,500,000 units at a price of twenty $0.20 per unit for gross proceeds of $300,000. The company intends to close the private placement immediately following the satisfaction of customary closing conditions, including receipt of all regulatory approvals. Esstra will use the net proceeds of this private placement to purchase the equity interest in ExSorbtion. Esstra Industries Inc. (TSXV:ESS) completed the acquisition of a 5% equity interest in ExSorbtion Inc on September 3, 2020.