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Hy-Drive Technologies Ltd. (HGS-V)
MISSISSAUGA, ON, June 29 /CNW/ - Hy-Drive Technologies Ltd. ("Hy-Drive" or the "Company") today announced that it has completed a third tranche of its previously announced "best efforts" private placement (the "Private Placement") and has issued Cdn$74,949 of units ("Units") of the Company, on a brokered basis, bringing the total gross proceeds raised, to date, to $4,272,850.
As previously announced, Hy-Drive issued $4,197,901 of Units of a maximum of $5 million of Units, pursuant to the Private Placement, with net proceeds to be used by the Company for working capital, marketing and production of HGS units, production of the mining HGS and for capital expenditures required to complete the development of IP for engine platforms other than Caterpillar.
The Company has issued a total of 14,242,830 Units pursuant to the Private Placement, including 249,833 Units today, at a price of Cdn$0.30 per Unit. Each Unit was comprised of one common share (a "Share") of the Company and one-half of one warrant (a "Warrant"), with each whole Warrant exercisable for one Share of the Company at an exercise price of Cdn$0.46 per share for a period of five years. The Company may issue additional Units pursuant to the Private Placement.
In connection with today's closing, CapStone Investments, non-Canadian placement agent for the Private Placement, is receiving a cash fee of $4,496.99 and 14,989 broker warrants, each exercisable for one Share at price of Cdn$0.46 per share for a period of two years.
All securities issued or issuable pursuant to the Private Placement today are subject to a hold period expiring on October 30, 2010, in accordance with the policies of the TSX Venture Exchange and applicable securities laws.
Hy-Drive is a technology firm that has developed a proprietary, patented hydrogen generating system. Hy-Drive's Hydrogen Generating System ("HGS(TM)") 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 more information, please visit www.hy-drive.com.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information concerning Hy-Drive's private placement and its intended use of the net proceeds therefrom. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Many of these assumptions are based on factors and events that are not within the control of Hy-Drive and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include risks associated with Hy-Drive's business, including, without limitation, factors relating to the marketing, development and commercialization of Hy-Drive existing and prospective product lines, regulatory approvals and requirements, changes in foreign exchange and interest rates, government regulation, environmental risks, capital expenditures, intellectual property, operating or technical difficulties, availability of skilled labour and equipment, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Hy-Drive's Management's Discussion and Analysis for the period ended March 31, 2010 at www.sedar.com. Although Hy-Drive has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Hy-Drive undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE HY-DRIVE TECHNOLOGIES LTD.
For further information: For further information: Fred M. Florence, COO & CFO, Hy-Drive Technologies Ltd., Tel: (905) 542-3024 ext. 257, email@example.com