BROSSARD, QC, June 26 /CNW Telbec/ - Railpower Technologies Corp.
(TSX: P) today announced that its shareholders voted in favour of an
investment of $20 million by Ontario Teachers' Pension Plan (Teachers) to
finance, among other things, construction of a manufacturing facility in
Saint-Jean-sur-Richelieu. Shareholders approved all required resolutions at
the annual general and special meeting held earlier today in Toronto with 99.0
per cent in favour of these resolutions.
"The board of directors was unanimous that this private placement was in
the best interests of Railpower and recommended that shareholders approve the
investment. I am happy that shareholders voted overwhelmingly in favour of
this investment," said Norman Gish, Chairman of Railpower adding that "owning
a plant is an important step for Railpower to effectively meet and serve its
"We appreciate Teachers' and our shareholders' support. Thanks to this
investment, Railpower is one step closer to owning a dedicated, world class
manufacturing facility capable of building the world's leading high efficiency
locomotives. It is expected to significantly improve our manufacturing
efficiencies and provide Railpower with the ability to rapidly expand its
current production and thus, support the growth profile we are preparing for"
said Mr. Mathieu, President and CEO of Railpower.
Teachers' private placement consists of the issuance of a secured
convertible debenture on terms similar to its last investment. The debenture
will mature on January 4th, 2013, and will bear interest at a rate of 5% per
annum, payable semi-annually in either cash or common shares, at the
discretion of Railpower. The initial principal amount of the debenture will be
convertible, at the election of the holder, in whole or in part, into either
common shares or restricted voting shares, or any combination thereof, at a
conversion ratio of $0.40 per share, representing up to 50,000,000 shares.
This debenture will be transferable two years after its issuance.
At today's meeting, the shareholders also approved certain amendments to
the initial debenture of $35 Million dollars issued on January 4th 2008, in
order to make it secured and transferable after two years from the issuance of
the $20 million debenture. The closing, which is subject to customary
conditions, is expected to occur in the following days.
The shareholders also approved the election of all proposed directors and
the renewal of the Corporation's share compensation plan.
Railpower Technologies (TSX: P) develops, markets, produces and sells
specialized, patented, environment-friendly technology systems for the
transportation and related industries. Railpower's technologies significantly
reduce fuel usage, operating and maintenance costs and emissions. While
Railpower's origins are in the transportation industry, its technologies have
broad potential and applications in other markets and industries. Railpower is
headquartered in Brossard, Quebec. It U.S. office is located in Erie,
Caution regarding forward-looking statements
Certain statements contained in this release contain forward-looking
statements. When used in this document, the words "may", "would", "could",
"will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and
similar expressions may be used to identify forward-looking statements. Those
statements reflect our current views with respect to future events or
conditions, including prospective results of operations, financial position,
and predictions of future actions, plans or strategies. Certain material
factors and assumptions were applied in drawing our conclusions and making
those forward looking statements. By their nature, those statements reflect
management's current views, beliefs and assumptions and are subject to certain
risks and uncertainties, known and unknown, including, without limitation, the
ability to secure new orders, the ability to retain our employees, product
development or manufacturing delays, the ability of our current manufacturing
supplier to meet our production demands in terms of quantity, quality and
costs, our ability to reach a satisfactory agreement with another supplier if
necessary or to build, rent or buy a manufacturing facility, changing
environmental regulations, the ability to attract and retain business
partners, the acceptance of our existing and new products, future levels of
government funding, the need to obtain and maintain proprietary rights over
our technology, competition from other technologies or new competitors, the
ability to access the capital required for research, product development,
operations and marketing, the need to generate positive cash flow in the
foreseeable future, potential legal liability related to the recall of our
Green Goat(R) locomotives, changes in energy prices and currency levels. Many
factors could cause our actual results, performance or achievements to be
materially different from any future results, performance or achievements that
may be expressed or implied by these forward-looking statements. Should one or
more of these risks or uncertainties materialize, or should the assumptions
underlying our projections or forward-looking statements prove incorrect, our
actual results may vary materially from those described in this report as
intended, planned, anticipated, believed, estimated, or expected. Unless
otherwise required by law, we do not intend or do not assume any obligation to
update these forward-looking statements whether as a result of new
information, plans, events or otherwise.
For further information:
For further information: Kamila Wirpszo, Vice-President, General Counsel
and Corporate Secretary, Railpower Technologies Corp., (450) 678-5277 ext.
518, Toll Free: 1-866-678-5277, email@example.com