Legend Power adopts second warrant exercise incentive program

VANCOUVER, March 18, 2014 /CNW/ - Legend Power Systems Inc. (TSX-V: LPS) is pleased to announce the adoption of a second incentive program to encourage the early exercise of further outstanding warrants. The warrants subject to the program are exercisable to purchase 2,201,000 shares for $0.15 per share until July 31, 2014 and then at $0.30 per share until July 31, 2016 (the "Original Warrants").

To encourage the early exercise of the Original Warrants, the Company has amended the terms of the Original Warrants such that each holder who exercises Original Warrants before April 17, 2014 (the "Deadline") shall receive an additional non-transferable share purchase warrant (an "Additional Warrant"). Each Additional Warrant will entitle the holder to acquire one common share of the Company at an exercise price of Cdn $0.30 until July 31, 2016. If a holder does not exercise the Original Warrants before the Deadline (or only partially exercises them), the Original Warrants (or the portion not exercised) shall continue to be exercisable to purchase only common shares of the Company on their original terms.

The common shares issuable to insiders upon the exercise of the Additional Warrants will be subject to a four month restricted resale period. The proceeds from the early exercise of the Original Warrants will be used for general working capital purposes.

One person who is a director and officer of the Company owns an aggregate of 172,333 Original Warrants. His participation in the incentive program and issuance of Additional Warrants constitutes a "related party transaction" as defined in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions and TSX Venture Exchange Policy 5.9 Protection of Minority Security Holders in Special Transactions. However, the warrant incentive program is exempt from the formal valuation and minority shareholder approval requirements of both, as neither the fair market value of the Additional Warrants to be issued to, nor the consideration paid by, such director and officer exceeds 25% of the Company's market capitalization.

The incentive program is subject to approval by the TSX Venture Exchange.

Further to the Company's news release of March 7, 2014 respecting its other Warrant Exercise Incentive Program for the 8,185,165 warrants expiring on October 18, 2016, the Company clarifies that the four month hold period on shares issued upon the exercise of the Additional Warrants under that program only applies to shares issued to insiders.

About Legend Power Systems Inc.
Legend Power Systems Inc. (www.legendpower.com) is a leading electrical energy conservation company that manufactures and markets a patented device to help commercial and industrial customers achieve significant energy savings through voltage optimization. Legend Power's electrical savings solution helps companies reduce their electricity bills, maintenance costs, and increases the life of electrical equipment, while contributing to a reduction in greenhouse gas emissions.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release. 

SOURCE: Legend Power Systems Inc.

For further information:

Randy Buchamer 
C.E.O. and President
Legend Power Systems Inc.
+ 1 778 945 1501

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