Hy-Drive Technologies Announces Private Placement

Hy-Drive Technologies Ltd. (HGS-V)

MISSISSAUGA, ON, April 19 /CNW/ - Hy-Drive Technologies Ltd. ("Hy-Drive" or the "Company") (TSXV: HGS) today announced that it has retained Loewen, Ondaatje, McCutcheon Limited ("LOM"), a Toronto based investment bank, to assist the Company with a "best efforts" private placement financing (the "Offering") for up to 10,000,000 units ("Units") at a price of CDN $0.15 per unit for gross proceeds of up to CDN $1.5 million. The Offering will be offered for sale in the province of Ontario and in any one or more provinces of Canada as mutually agreed between Hy-Drive and LOM, to "accredited investors".

In connection with the Offering Hy-Drive will issue Units comprised of one common share and one-half of one common purchase warrant. Each whole warrant (a "Warrant") will be exercisable at the offering price of $0.20 for a period of 24 months from the closing date of the Offering.

The Offering remains subject to, among other things, completion of satisfactory due diligence, as well as, receipt of all necessary approvals, including that of the TSX Venture Exchange.

If the Offering proceeds, and dependent on the amount of capital raised, the Company expects that net proceeds from the Offering may be used to (i) accelerate the commercialization of the Company's patented product, the blutip Power3, for the power generation market, (ii) further the developments of its software for existing control and telematic products for use in new combustion engine systems and applications, such as different types of diesel engine manufacturers, and (iii) general working capital purposes.

Hy-Drive has agreed to pay LOM a cash commission equal to 7% of the gross proceeds of the Offering and issue to LOM broker warrants equal to 7% of the aggregate number of units issued in connection with the successful completion of the Offering. The broker warrants will be exercisable to purchase one common share of Hy-Drive at a price equal to $0.155 at any time and from time to time prior to the day that is 24 months from the closing date of the offering and will be subject to all regulatory hold periods and approvals.

About blutip Power/Hy-Drive

blutip Power Technologies, a division of Hy-Drive Technologies Ltd., is a technology company headquartered in Mississauga, Ontario, Canada. The Company has invested in the research and development of hydrogen and control technology resulting in a proprietary, patented and patent-pending hydrogen generating system ("HGS®") and advancement in multi-fuel universal combustion controls. blutip's Hy-Drive HGS enriches the fuel-air charge of an internal combustion engine with hydrogen produced through electrolysis and uses its proprietary software controls to improve combustion of the fuel-air mixture. The result is improved fuel economy and reduced opacity (particulates).

Cautionary Note Regarding Forward-Looking Statements:

This press release contains certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with the Company's proposed private placement ad related matters. Forward-looking statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements including but not limited to, statements about Hy-Drive's proposed private placement and related matters and can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", "thinks", or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved" and similar expressions to the extent that they relate to the Company or its management. These forward-looking statements are not historical facts, but reflect the Company's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectation.

Although Hy-Drive has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Hy-Drive does not undertake to update any forward-looking information that is incorporated by reference herein, except in accordance with applicable securities laws.

Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Hy-Drive Technologies Ltd.

For further information:

Robert H. Bucher, P.Eng
President & CEO
Tel:  (905)542-3024 x222
Email: rbucher@blutipower.com
Media Relations
Tel:  (905)542-3024 x268

 

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Hy-Drive Technologies Ltd.

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