/THIS NEWS RELEASE IS INTENDED FOR
DISTRIBUTION IN CANADA ONLY AND IS
NOT INTENDED FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
VANCOUVER, April 6, 2018 /CNW/ - Legend Power Systems Inc.
(TSXV:LPS) ("Legend Power" or the "Company"), a global leader in
voltage reduction and management technology, is pleased to announce
that it has closed its previously announced bought deal offering of
common shares (the "Offering"). The Company issued 12.5
million common shares (the "Shares") at a price of $0.80 per Share (the "Offering Price") for gross
proceeds of $10 million. The
Offering was completed pursuant to an underwriting agreement dated
March 23, 2018 among the Company and
syndicate of underwriters led by GMP Securities L.P. and including
Canaccord Genuity Corp. and Haywood Securities Inc. (collectively,
the "Underwriters"). The Company paid a cash commission to
the Underwriters equal to 6% of the gross proceeds of the Offering,
subject to a reduced rate of 3% for subscribers on the Company's
president's list and issued 664,050 warrants to the Underwriters
(the "Broker Warrants"). Each Broker Warrant entitles the
holder to purchase one common share of Legend at the Offering Price
for a period expiring April 6,
2020.
The net proceeds of the Offering will be used to fuel growth
initiatives including, but not limited to, the following:
- Expansion to additional US sales regions;
- Joint venture and marketing initiatives;
- The creation of an internally financed shared-energy savings
program with potential for recurring revenue streams;
- Working capital for increased sales and inventory levels;
and
- Product enhancement and line extensions.
"Closing this financing provides the fuel to enable strong
growth anticipated with the execution of our aggressive business
plan," commented Randy Buchamer, CEO
& Director of Legend Power. "We are delighted with the
endorsement provided by GMP Securities and the balance of the
syndicate with whom we look forward to building a solid
relationship. On closing Legend will have in excess of
$14 million in working capital, to
implement our North American expansion plan".
The Company also granted the Underwriters an over-allotment
option to purchase up to an additional 1,250,000 Shares at the
Offering Price, exercisable in whole or in part, for a period of up
to 30 days after the closing of the Offering, to cover
over-allotments, if any, and for market stabilization
purposes. If this option is exercised in full, an additional
$1.0 million will be raised pursuant
to the Offering.
The Offering was completed by way of a short form prospectus
filed in all of the provinces and territories of Canada.
Certain of the Shares were also sold to U.S. buyers on a private
placement basis pursuant to the exemptions from the registration
requirements in Rule 144A or Rule 506(b) of Regulation D of the
United States Securities Act of 1933 and as amended and in
certain other jurisdictions. The securities sold have not
been, nor will they be, registered under the United States
Securities Act of 1933, as amended, and may not be offered or
sold in the United States or to,
or for the account or benefit of, U.S. persons absent registration
or an applicable exemption from the registration
requirements. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities in any State in which such
offer, solicitation or sale would be unlawful.
About Legend Power Systems Inc.
Legend Power Systems
Inc. (www.legendpower.com) is changing the way buildings around the
world use power. The Company's patented and proprietary technology
reduces overvoltage, a natural condition present in power grids
around the world. Overvoltage inflates energy costs, damages
electrical equipment, and increases the negative impact a building
has on the environment. Legend's utility-proven Harmonizer improves
the power efficiency of an entire building to reduce total energy
consumption and power costs, while maximizing equipment life. The
solution provides customers risk free energy savings, improves the
value of their physical assets, and enhances their sustainability
efforts. As an application with demand side benefits, Legend is
also a key contributor toward utility conservation goals. In 2015
Legend was recognized as the top performing cleantech company on
the TSX Venture Exchange.
Neither the TSX Venture Exchange nor the
Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this
release.
Forward-Looking Statements
This Press Release may
contain statements which constitute "forward-looking information"
within the meaning of applicable securities laws, including,
without limitation, statements regarding the plans, intentions,
beliefs and current expectations of the Company, its directors, or
its officers with respect to the future business activities and
operating performance of the Company or the planned use of proceeds
from the Offering. The words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "estimate", "expect" and
similar expressions, as they relate to the Company, or its
management, are intended to identify such forward-looking
statements. Investors are cautioned that any such forward-looking
statements are not guarantees of future business activities or
performance and involve risks and uncertainties, and that the
Company's future business activities may differ materially from
those in the forward-looking statements as a result of various
factors. Such risks, uncertainties and factors are described in the
periodic filings with the Canadian securities regulatory
authorities, including the Company's quarterly and annual
Management's Discussion & Analysis, which may be viewed on
SEDAR at www.sedar.com. 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. Although the Company
has attempted to identify important risks, uncertainties and
factors which could cause actual results to differ materially,
there may be others that cause results not be as anticipated,
estimated or intended. The Company does not intend, and does not
assume any obligation, to update these forward-looking statements
other than as may be required by applicable law.
SOURCE Legend Power Systems Inc.