TORONTO--
Hy-Drive Technologies Ltd. (TSX-V: HGS) (the
"Company") today announced that
it has engaged Jennings Capital Inc. and
Haywood Securities Inc. (the "Agents")
as its "best efforts" agents in
connection with a private placement
of 3,000,000 units of the Company (the
"Units") to accredited investors
at a price of $0.80 per Unit for aggregate
gross proceeds of $2,400,000 (the
"Offering"). Each Unit comprises one common
share and one common share purchase
warrant. Each common share purchase
warrant entitles the holder to purchase
one additional common share of the
Company at a price of $1.30 per
common share for a period of two years from
the closing date.
The net proceeds of the offering
will be used to fund tooling
requirements and inventory build
up in anticipation of commercial sales. The
proceeds will also be used for patent
applications to further strengthen the
Company's intellectual property
portfolio and for working capital and general
corporate purposes.
The Units will be issued to accredited
investors in Ontario, Alberta and
British Columbia and other jurisdictions
to be agreed upon pursuant to
prospectus and registration exemptions.
The shares and warrants and the shares
underlying the warrants will be
subject to a hold period of four months plus
one day from the date of issuance
in accordance with the policies of the TSX
Venture Exchange and applicable
securities laws.
In addition, the Company has granted
the Agents an option for additional
Units, to be sold on a "best efforts"
agency basis, which shall be exercisable
at any time up to 48 hours prior
to the closing date, to increase the size of
the Offering by up to an additional
750,000 Units for additional gross
proceeds of $600,000.
Subject to approval by the TSX Venture
Exchange, the Company will pay an
8% cash commission to the Agents
and issue to the Agents warrants entitling
the Agents to purchase that number
of Units of the Company equal to 8% of the
number of Units sold under the Offering.
The private placement financing is
subject to regulatory approval and
the completion of definitive documentation.
Forward-Looking Statements
Certain information regarding the
Company contained herein may constitute
forward-looking statements under
applicable securities laws. Such statements
are subject to known or unknown
risks and uncertainties that may cause actual
results to differ materially from
those anticipated or implied in the forward-
looking statements.
The securities offered have not
been registered under the U.S. Securities
Act of 1933, as amended, and may
not be offered or sold in the United States
absent registration or exemption
from the registration requirements. This
press release shall not constitute
an offer to sell or the solicitation of an
offer to buy nor shall there be
any sale of the securities in any State in
which such offer, solicitation or
sale would be unlawful.
About Hy-Drive
Hy-Drive is an energy technology
firm that has developed a proprietary,
patented Hydrogen Generating System
("HGS). The Hy-Drive HGS generates and
injects hydrogen gas into the combustion
chamber of a regular internal
combustion engine, enhancing the
combustion process by allowing fuel to burn
more efficiently and completely.
In extensive customer trials and tests
conducted to date, the product has
shown significant performance enhancements
including reduced emissions and
increased fuel efficiency. Hy-Drive is
focusing initially on the markets
for commercial trucks and buses, where high
fuel costs and stricter emissions
standards are creating strong demand for
commercial-ready solutions. In addition,
the company recently signed an
agreement with Tier 1 automotive
supplier Martinrea International Inc. to
develop the product for automobiles
and light trucks.
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