Legend Power Secures $500,000 Credit Facility

BURNABY, BC, Oct. 31, 2012 /CNW/ - Legend Power Systems Inc. (TSX.V: LPS) ("Legend Power" or the "Company") announces that it has entered into a credit agreement for a $500,000 credit facility (the "Credit Facility") with Quest Capital Management Corp. ("Quest") on behalf of a syndicate of lenders, which includes Company insiders for a total of $150,000. The Credit Facility has a one-year term, bears interest at a rate equal to 8% per annum, and is secured by a promissory note and a general security agreement. The Credit Facility will be used for working capital purposes.

As consideration for structuring the Credit Facility, the Company will pay Quest a 1% fee and reimburse its expenses, and will issue to the lenders, as a bonus, 1,333,333 units (the "Bonus Units"). Each Bonus Unit is comprised of one common share of the Company and one common share purchase warrant that entitles the holder thereof to purchase one share at a price of $0.10 up to the date that is 12 months following the date the Credit Facility is advanced to the Company. All securities issued in connection with the Credit Facility, including those issuable upon the exercise of the warrants, are subject to a statutory hold period expiring on March 1, 2013.

About Legend Power Systems Inc.

Legend Power Systems Inc. (www.legendpower.com) 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-AVR helps companies reduce their electricity bills, maintenance costs, and increases the life of electrical equipment, while contributing to a reduction in green house gas emissions.

Forward Looking Information This news release contains "forward-looking statements", within the meaning of applicable Canadian securities legislation, concerning the business of Legend Power. All statements, other than statements of historical fact, are forward-looking statements. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "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" or the negative connotation thereof. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, performance or achievements of Legend Power to be materially different from those expressed or implied by such forward-looking statements. Certain of these factors are discussed in greater detail in Legend Power's condensed interim consolidated financial statements for the nine months ended June 30, 2012 and accompanying management's discussion and analysis on file with the Canadian provincial securities regulatory authorities and available at www.sedar.com. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. In addition, although Legend Power has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Legend Power does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.

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: Legend Power Systems Inc.

Shabir Dhanani 
Chief Financial Officer and Corporate Secretary
Legend Power Systems Inc.
+ 1 778 945 1503
[email protected]
 
LEGEND POWER SYSTEMS INC.
8561 Commerce Court
Burnaby, BC V5A 4N5
[phone]
www.legendpower.com