- Ready for commercial marketing launch
- Continued technology development
- Initial exports to Australia
- Agent Retained to Assist with Proposed Private Placement
MISSISSAUGA, ON, March 8 /CNW/ - Following continued successful customer based trials, Hy-Drive Technologies Ltd. ("Hy-Drive") is now primed for it's official North American commercial marketing launch at the Mid-America Trucking Show from March 25 - 27, 2010 in Louisville, Kentucky and the Truck World Show on April 15 - 17, 2010 in Toronto, Ontario.
An assertive pre- and post- truck show marketing campaign, developed by BKV, a full service marketing agency specializing in direct response campaigns, is being launched in March 2010. It includes a targeted direct mail and follow-up campaign that is designed to develop early sales traction for the HGS with 1,500 trucking fleets.
Hy-Drive's sales agency, IntraLink, has re-activated its North American sales force and is concentrating its initial marketing efforts on the 1.3 million Caterpillar powered Class 8 trucks on the road in Canada and the United States. In independent tests on trucks with Caterpillar C12 engines, following SAE standards, Hy-Drive's HGS technology delivered 11.47% better fuel economy and 39.5% less particulate opacity. The HGS is currently available for sale for a range of Caterpillar C12, C13 and C15 engines.
On a parallel activity basis, Hy-Drive's research and development continues to develop working technology solutions for the entire Class 8 on-highway truck market which represents a total of 4.2 million engines in North America alone. And, while confident in the current HGS product, work continues on next generation product designs that are anticipated to reduce costs through enhanced engineering and outsourced manufacturing.
With increased confidence in HGS' reliability and dependability, Hy-Drive has elected to re-engage in the overseas marketplace. An initial shipment of ten (10) HGS units was recently exported to our Australian sales agent, Sparta Capital Ltd. (TSX-V: SAY). "We are very pleased to be able to market the HGS in Australia again", said Ray Ludwig, Vice President of Operations for Sparta. "Diesel prices are higher than in North America and the HGS will reduce fleet owners' considerable fuel costs and emissions."
Further, Hy-Drive today announced it has retained US-based CapStone Investments ("CapStone") to assist the Company with a possible "best efforts" private placement financing. The decision to proceed with any equity offering remains subject to, among other things, the parties agreeing on satisfactory terms of the offering (including size and pricing), 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 proceeds from the offering may be used to fund marketing activities, unit production and introduction of new products. Additionally, funds may be used for research and development, technology enhancement and patent applications.
"CapStone previously assisted the Company to raise approximately USD$25.7 million during 2006-2007 and we look forward to working with CapStone again to explore additional financing opportunities," said Hugo T. Sørensen, President and CEO of Hy-Drive.
Hy-Drive has agreed to issue CapStone 100,000 purchase warrants (the "Warrants") exercisable for common shares ("Common Shares") of the Company at a price of $0.494 per share for a period of two years from the date of issue. The Warrants are being issued as consideration for financial advisory services valued at US$35,000 rendered by CapStone. The issuance of the Warrants remain subject to TSX Venture Exchange approval and, if approved, the Warrants and the Common Shares issuable on exercise of the Warrants will be subject to a four month hold period.
Hy-Drive is a technology firm that has developed a proprietary, patented hydrogen generating system. Hy-Drive's Hydrogen Generating System ("HGS(TM)") generates and injects hydrogen gas into a regular internal combustion engine, enhancing the combustion process by allowing fuel to burn more efficiently and completely. For more information, please visit www.hy-drive.com.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information concerning Hy-Drive's marketing and technological development efforts as a well as possible financing activities. Generally, forward-looking information 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", 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". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Many of these assumptions are based on factors and events that are not within the control of Hy-Drive and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include risks associated with the marketing, development and commercialization of Hy-Drive existing and prospective product lines, numerous risks associated with best efforts financing activities, including agreement on the size and terms of any offering, the ability to raise sufficient funds as well as receipt of all required regulatory and other approvals as well as those risk factors discussed in Hy-Drive's Management's Discussion and Analysis for the period ended September 30, 2009 at www.sedar.com. Although Hy-Drive has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Hy-Drive undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
Nothing contained in this press release shall be deemed an offer of securities for sale in the United States, which may not be offered or sold in the United States absent registration or an exemption from registration.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE HY-DRIVE TECHNOLOGIES LTD.
For further information: For further information: Hugo T. Sorensen, President & CEO, Hy-Drive Technologies Ltd., Tel: (905) 542-3024, ext. 222, firstname.lastname@example.org; Fred M. Florence, Vice President & CFO, Hy-Drive Technologies Ltd., Tel: (905) 542-3024 ext. 257, email@example.com