VANCOUVER, March 7, 2014 /CNW/ - Legend Power Systems Inc. (TSX-V: LPS) is pleased to announce the adoption of an incentive program to
encourage the early exercise of its outstanding warrants which are
exercisable to purchase 8,185,165 shares for $0.15 per share until
October 18, 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 March 31, 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 October 18, 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 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 director and officer of the Company owns an aggregate of 450,000
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
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