TSX Venture Exchange symbol: HGS
TORONTO, June 14 /CNW/ - Hy-Drive today announced the following
highlights from its Annual Meeting of Shareholders held on Tuesday, June 12,
- Discussion of the annual audited financial statements for the year
ended December 31, 2006;
- Election of four new directors to the Board;
- Approval of 2007 Option Plan;
- Appointment of DMCT, LLP, Licensed Public Accountants as auditors for
the fiscal year December 31, 2007;
- Election of Dan Doucette as Chairman of the Board; and
- Discussion of operational highlights.
Election of the Board:
The following individuals were elected to the Board for the coming year:
Dan Amadori, Tom Brown, Dan Doucette, Ken Kivenko, Peter Lo, David Merrion,
John Mitola, Brice Scheschuk and Peter Williams.
In a separate meeting of the Board, Dan Doucette was elected as Chairman
of the Board.
Retiring from the Board are Charles Burgess, previous Chairman of the
Board and John O'Bireck. Mr. O'Bireck remains with the Company in the position
of Chief Technology Officer.
"Moving into a stage of aggressive commercialization and growth requires
our Company to enhance our Board" said Tom Brown, President and CEO. "The
addition of four new board members adds a great deal of depth and experience
to our team. My appreciation goes out to both Charles Burgess and John
O'Bireck who have served on this Board since its inception and have been
instrumental in guiding the company through its development phase."
Following the formal meeting Tom Brown, President & CEO and John Wright,
COO, presented the operational highlights for the Company including:
- The new generation product launch of the G3 and M3 platforms was
delayed to the third quarter while qualifications and regulatory
standards are finalized;
- Expansion of licensing agreement with our mining partner, Mining
Technologies Inc. (MTI) where MTI has indicated its intention to
supply the mining market with 2,000 units over the next three years;
- Achievement of dual sourcing for all purchased HGS sub-components;
- Continued improvement in gross profit margin;
- Achieved targeted production rate of 10 units per day;
- Continued product testing and validation with results to be published
in the third quarter;
- Continued development of new market opportunities; and
- Continued Company focus on objective to achieve one month of positive
cash flow from operations prior to year-end.
Board of Directors Meeting:
Immediately following the Shareholders' Meeting, a resolution was passed
by the Board of Directors resulting in the issuance of 1,486,000 stock options
under the 2007 Option Plan. Of this total issuance, 1,050,000 were
conditionally issued in 2006 and confirmed as a result of Shareholder
acceptance of the 2007 option plan. These stock options were issued with an
exercise price of $3.55 per share, vesting immediately and expiring on June
17, 2017. Of this total, 885,000 options were issued to members of the Board
of Directors, 125,000 options were issued to a Senior Officer and 20,000 of
these options were issued to Bristol Investor Relations. The remaining 436,000
options were issued with an exercise price of $2.25, with varying vesting
dates between June 12, 2007 and June 12, 2009 and expiring on June 12, 2017.
Of these remaining 436,000 options granted, 182,500 were issued to current
members of the Board of Directors, and 100,000 were issued to a Senior
Further to our press release dated March 2, 2006 regarding the engagement
of Investors relations Firms, we would like to provide the following update:
Bristol Investor Relations, a division of Bristol Capital Ltd.
("Bristol") was originally engaged for a period of twelve months commencing
August 8, 2005 to provide services to the Company in the nature of investor
relations. On October 17, 2006 the engagement was amended and the term of the
amending agreement was extended until September 7, 2007. The amending
agreement provided that Bristol would provide investor relations services and
services of introducing institutional investors to the Company. The
anticipated costs of the services are as follows: i) $6,000 per month, ii) a
fee for each successful financing activity of 1.5% up to $2,000,000, 1% from
$2,000,000 to $10,000,000, and 3/4 of 1% for all successful financing activity
greater than $10,000,000, and warrants to the same percentage, iii) $47,500
upon signing of agreement, iv) 20,000 options to be issued at a market
Northern Capital Partners Inc. ("Northern") signed a Communication
Services Agreement on March 1, 2006 for a term of eighteen months. Northern
was engaged to provide the following services: i) introduce the Company to
subscriber based publications, ii) advise Company with respect to public
communication materials, iii) encourage investment in the Company, and iv)
investor presentation preparation.
The compensation for Northern is as follows; i) $6,000 per month, ii) a
25,000 share option certificate - priced at $0.80/share and valid for a period
of 24 months, iii) a finder's fee of $2,500 per placement for placing a new
board member or a new member of senior management, iv) a 6% finder's fee for
any new equity financing secured or a negotiated finder's fee on any new
business brought to Hy-Drive. In addition, Northern was granted 74,000 common
share options of Hy-Drive with an eighteen month expiry date to purchase
common shares at a price of $1.12 per share.
Note: The documents for the AGM including a briefing for the electors can
be found at www.sedar.com.
Hy-Drive is an energy technology firm that has developed a proprietary,
patented hydrogen generating system. The Hy-Drive system 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 further information, visit www.hy-drive.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release may constitute
forward-looking statements. Such statements reflect Hy-Drive's current views
with respect to future events and are subject to certain risks, uncertainties
and assumptions. Many factors could cause Hy-Drive's actual results,
performance or achievements to be materially different from any future
results, performance or achievements that may be expressed or implied by such
forward-looking statements, including among other things, those which are
discussed under the headings "Risk Factors" and elsewhere in documents that
Hy-Drive files from time to time with securities regulatory authorities.
Should one or more of these risks or uncertainties materialize, or should
assumptions underlying the forward-looking statements prove incorrect, actual
results may vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Hy-Drive does not intend, and
does not assume any obligation, to update these forward-looking statements.
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved the
contents of this press release. The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Investor Relations: Glen Akselrod, Bristol
Capital Ltd., Tel: (905) 326-1888, firstname.lastname@example.org OR Tom Brown, President
& CEO, Hy-Drive Technologies Ltd., Tel: (905) 542-3024, ext. 300,
email@example.com; Media Relations: Teresa Madaleno, KTML Communications
Ltd., Tel: (416) 877-3915, firstname.lastname@example.org OR Patrick Smith, Marketing &
Communications, Hy-Drive Technologies Ltd., Tel: (905) 542-3024,