Demand for PicBucket(R) products accelerate following successful Turkish and Middle-East field tests
TERREBONNE, QC, May 13 /CNW Telbec/ - PowerTech Corporation Inc. ("PowerTech" or the "Company"; TSX-V: PWB) announced today that it has recently obtained additional orders worth $120,000 from OM Engineering ("OM"), a manufacturer of construction buckets strategically located in Istanbul, Turkey. These orders are in addition to those already confirmed in the non exclusive OEM agreement with OM Engineering.
Following very successful and conclusive field tests recently conducted with large contractors, OM Engineering decided to broaden and accelerate the deployment of the PicBucket(R) product line to better respond to the increasing market demand.
Furthermore, Mr. Carol Murray, President and Chief Executive Officer of the Company, announces that PowerTech will convert into common shares of the Company, a $1.0 million non-guaranteed convertible debenture issued to FIER CAP Diamant, a limited partnership ("FIER"), following the exercise of its conversion right.
As of March 31, 2010, the Company owed the FIER $1.0 million in principal and $318,132 in interest which will be converted into 9,415,229 common shares of the Company at a per common share price of $0.14. Following the conversion, FIER will own 15.5% of the Company's issued and outstanding shares on a diluted basis.
The conversion is subject to the usual regulatory approval of the TSX Venture Exchange.
"The conversion of the FIER's debenture will strengthen PowerTech's balance sheet and will also reduce our future debt servicing commitments. When combined with our recent commercial breakthroughs, this will allow PowertTech to continue its organic growth while favorably positioning the Company for its acquisition program." mentioned Mr. Murray.
PowerTech also announces the resignation of Mr. Tony Plescia from its Board of Directors for personal reasons. "We wish to thank Tony for his contribution to the Board and wish him best of luck in his future endeavors" said Mr. Murray. The Company does not intend to replace him in the short term.
About Power Tech (www.powertechci.com)
Power Tech is the only company in the world that manufactures and commercializes percussion technology with interchangeable tools and accessories for the construction, demolition and military industries.
Power Tech's percussion technology is a technological breakthrough that combines the power of a hydraulic hammer with the stripping force and manoeuvrability of a conventional bucket. Power Tech's products are marketed under the PicBucket (R) and PicHammer (R) names as well as under world renowned private label brands thru OEM agreements with large manufacturers.
The trademarks PicBuckets (R), PicHammer (R) and the Power Tech logo are registered trademarks of Power Tech Canada Inc.
Certain statements included herein, including those that express management's expectations or estimates of the future performance of the Company, constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements.
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 POWERTECH CORPORATION INC.
For further information: For further information: Mr. Carol Murray, President and Chief Executive Officer, PowerTech Corporation Inc., (450) 963-6400 #101, Fax: (450) 963-4411, firstname.lastname@example.org; Mr. Marc Jasmin CMA, Partner, Jasmin-Dumais Financial Communications Inc., Investor Relations, (514) 231-2360, Fax: (514) 221-3762, email@example.com