In addition to Assisting with CEO Transition, Committee to Oversee
Corporate Strategy and Product Review to Address Weaker than Expected
2007 Operating Results
TSX Venture Exchange symbol: HGS
TORONTO, Aug. 7 /CNW/ - Hy-Drive Technologies Ltd. announced today a
series of steps that Management and the Board of Directors have initiated in
light of the announced retirement of President & CEO, Tom Brown and a recently
discovered correctable design defect in its HGS product manufactured prior to
While management believes design flaws have now been corrected, the
Company will not attain its projection of achieving positive cash-flow status
before the close of the 2007 reporting calendar year due to the corrective
action of rectification and replacement of impacted parts. Additionally, this
defect will require the Company to re-assess the value placed on existing
inventories of completed and work-in-process units, together with associated
Furthermore, President & CEO Tom Brown has advised the Board of his
intention to retire from his post, effective the end of the 2007 calendar
year. The Board recognizes the essential role that Tom has played in bringing
the Company to this state of maturity and looks forward to his continued
participation during this transition period. The Board also announced that it
will retain a leading executive search firm to recruit a replacement for Mr.
Brown prior to the end of 2007.
In order to bring its profit and revenues back in line with prior
expectations and with the announcement of Mr. Brown's retirement, the Board of
Directors has formed a Special Committee, ("Corporate Strategy and Transition
Committee"). The Committee will conduct a review of corporate
structure/management, general sales and marketing strategy and oversee a
third-party review of the status of the Company's product line. The Corporate
Strategy and Transition Committee's members will be comprised of Dan Doucette,
Chairman of the Board and Chair of the Governance Committee, David Merrion,
Chair of the Hy-Drive Advisory Panel, and John Mitola, Chair of the Human
Resources and Compensation Committee, all independent directors, and Tom
Brown, President & CEO. In addition, Mr. Mitola will be working directly with
Management throughout the transition period.
"Clearly, the Board felt it was time to take more pro-active steps to
respond to performance issues," stated Mr. Dan Doucette, new Chairman of the
Board. "We as a Board are demanding results and are taking the steps necessary
today to ensure that our technology is 'best-in-class' in the global
marketplace. The Board is determined to ensure that Hy-Drive has the right
management team in place to take this company to the next level. We remain
confident in the future of Hy-Drive and its contribution to the environment.
However, we are obviously not pleased with the revisions to our operating plan
and we know that the Company must continue to introduce enhancements to its
products and bring a new vision to our sales and marketing approach. We are
taking the steps necessary to ensure that our management team is prepared to
grow the enterprise in an orderly and sustained manner."
Hy-Drive's Corporate Strategy and Transition Committee will be holding a
conference call to further discuss these changes on Thursday, August 9th at
10:00 AM Eastern Time.
Investors can access the call by calling toll free 866-770-7120 and use
passcode 75328167. International callers can dial 617-213-8065 and use the
The call will be available for replay until September 9, 2007 by dialing
toll free 888-286-8010 or 617-801-6888. The replay will require use of
This call is being webcast by Thomson/CCBN and can be accessed at
Hy-Drive's Web site at www.hy-drive.com.
The call is also being distributed through the Thomson StreetEvents
Network to both institutional and individual investors. Individual investors
can listen to the call at www.fulldisclosure.com, Thomson/CCBN's individual
investor portal, powered by StreetEvents. Institutional investors can access
the call via Thomson's password-protected event management site, StreetEvents
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; Corporate Information:
Thomas Wallace, CFO, Tel: (905) 542-3024, email@example.com