Legend Power Systems Inc. Also Secures $2.3 Million Line of Credit
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BURNABY, BC, Aug. 7 /CNW/ - Legend Power Systems Inc. (TSX.V: LPS)
("Legend Power" or "the Company") today announced that it has finalized a
financing agreement with Royal Bank of Canada (RBC) for the bank to provide
lease financing to qualified customers purchasing Legend Power's Electrical
Harmonizer-Automatic Voltage Regulator (AVR) energy conservation device.
Under the terms of the lease agreement, RBC's leasing department has
agreed to provide qualified Legend Power customers with capital leases for up
to 100 per cent of the cost of an Electrical Harmonizer-AVR net of rebates and
grants for lease terms ranging from 24 to 60 months. Financing can include
equipment and extended warranty.
"The ability to lease the Electrical Harmonizer-AVR is a huge incentive
for companies looking to reduce their energy costs and minimize their
environmental footprint," said Gerry Gill, Chairman and CEO, Legend Power
Systems Inc. "In conjunction with available incentive funding from provincial
utilities, this financing program will enable Legend Power customers to offset
their lease payments through energy savings making the entire transaction
cash-neutral for most customers. At the end of the lease term, the customer
will own the equipment outright."
In addition, Legend Power finalized a $2.0 million conditional operating
line of credit with RBC as well as a $300,000 revolving lease line of credit
that will allow the Company to lease capital assets, which will free up
Legend Power's patented energy conservation device consisting of an
Electrical Harmonizer and an Automatic Voltage Regulator (together, the
"Electrical Harmonizer-AVR") has been proven to help companies reduce
electricity consumption by seven to ten per cent through "voltage
optimization." The Electrical Harmonizer component adjusts the incoming
voltage to the optimum operating level for each facility (as dictated by an
extensive pre-installation assessment) and operates at an efficiency of
greater than 99.5 per cent. The AVR component enables the Harmonizer to
automatically adjust the level of voltage optimization in harmony with load
fluctuations and will default to supply assurance mode in the event the
voltage supply falls below the optimal minimum.
The Company has 22 Electrical Harmonizer installations in British
Columbia and two in California. B.C. installations include Canada Post in
Vancouver and Victoria, BC Hydro's facilities on Dunsmuir in Vancouver,
Edmonds in Burnaby and their Nanaimo facility, IKEA in Richmond, shopping
malls such as Il Mercato and Sunshine Hills, schools and other facilities.
These installations have saved over $1 million in power consumption and
eliminated over 10,000 tones of greenhouse gas emissions.
The Electrical Harmonizer-AVR is eligible for incentive funding under the
BC Hydro Power Smart Partners' Program in British Columbia. Under this
program, BC Hydro will pay up to 60 per cent of the cost of the technology to
qualified customers which dramatically improves the payback incentive for
companies utilizing this technology. The Electrical Harmonizer-AVR also
qualifies for incentive funding in Ontario of up to 40 per cent under the
Building Owners and Manager's Association's (BOMA) Conservation and Demand
Management (CDM) program.
The Electrical Harmonizer is available in 400 amp to 1,500 amp sizes.
Cost of the technology varies based on unit size, prevailing electricity
rates, anticipated annual savings and complexity of the installation. Unit
size is based on peak demand over the previous 24 months. The cost of a
turnkey installation of an Electrical Harmonizer-AVR varies widely but
typically costs range from $60,000 to upwards of $250,000 per unit.
About Legend Power Systems Inc.
Legend Power Systems Inc. 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 Harmonizer-Automatic Voltage Regulator
(AVR) eliminates inefficiencies by delivering the optimal level of voltage a
user needs. Most customers receive higher voltage levels than required at
certain points of the grid from electrical utilities. Higher than nominal
voltage can affect the lifespan of electrical equipment and result in high
monthly utility bills. By delivering the optimal voltage to the user, Legend
Power's Electrical Harmonizer-AVR helps companies reduce their electricity
bills, maintenance costs and greenhouse gas emissions while increasing the
life of electrical equipment. The technology also decreases capital and
operating costs for electrical utilities.
Forward Looking Information
This release and referenced materials contain forward looking statements,
within the meaning of the "safe-harbour" provisions of the Private Securities
Act of 1995, which are subject to a number of known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially from those anticipated in our forward looking statements. Factors
that could cause actual results to differ materially include: rapid
technological and/or market changes in the industry including actual
electrical billing rates; the adequate protection of the Company's proprietary
rights; and other factors described in the Company's regulatory filings.
Although we believe the expectations reflected in our forward looking
statements are reasonable, individual results may vary, and we cannot
guarantee future results, levels of activity, performance or achievements.
For further information:
For further information: Ginny Morgan, Corporate Development Manager,
Legend Power Systems Inc., (604) 420-1500; Media: Ross Sullivan/Stephanie
Thatcher, Peak Communicators, (604) 689-5559; Investor Relations: Martin
Livingston, Living Communications Inc., (604) 657-8234; LEGEND POWER SYSTEMS
INC., 8618 Commerce Court, Burnaby, BC V5A 4N6, www.legendpower.com