Hy-Drive Technologies Ltd. (TSX-V: HGS)has completed a private placement of 2.7 million units at a price of $0.85 per unit for gross proceeds of approximately (Cdn.) $2.3 million under a private offering to accredited investors. The Units were subscribed for by institutional investors outside Canada.
Each unit consists of one common share of Hy-Drive and one-half of a warrant. Each whole warrant entitles the holder to purchase one additional common share of Hy-Drive at an exercise price of $2.00, for up to two years from the date of issue.
The net proceeds of the offering will be used to fund working capital and equipment requirements on continued anticipation of commercial sales, sales and marketing expenses to develop the global marketplace, research and development expenses to further enhance existing technology, patent applications to strengthen Hy-Drive’s intellectual property portfolio and general corporate purposes.
“As we near commercialization of our G-2 unit, we are pleased to have the continued support of these institutional investors, which we view as a strong endorsement of our technology, its market potential and our growth strategy,” “It was equally rewarding to have negotiated this deal at above market share price on the date of the agreement,” said Tom Brown, President & CEO of Hy-Drive Technologies Ltd.
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.
In extensive customer trials and tests conducted to date, the Hy-Drive system has demonstrated significant performance enhancements, including reduced emissions, increased torque/horsepower, fuel savings and extended engine life. These benefits, specifically fuel economy and reduced emissions provide customers with greater productivity overall, as their engines operate more efficiently, with improved cycle times and less carbon build-up.
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