POMPANO BEACH, Fla.--(BUSINESS WIRE)--Cyclone Power Technologies (OTCQB: CYPW), developer of the all-fuel, clean-tech Cyclone Engine, announced today that it has closed the first round of funding of its Secured Promissory Notes, part of a $350,000 financing to capitalize the Company’s recent acquisition of Advent Power Systems and its $1.4 million contract with the U.S. Army / TACOM. Funds will be used for technology development and general working purposes.
The 12-month Notes bear interest at the rate of 18% per annum, of which 6% is payable in cash at maturity and 12% in shares of Cyclone’s common stock, subject to Rule 144 restrictions. The principal of the Notes is not convertible into common stock. The Note holders have a security interest in certain accounts receivable under the Company’s contract with the U.S. Army / TACOM (originally through Advent Power Systems, but assumed by Cyclone in its recent acquisition of that company’s assets). The U.S. Army contract is currently in the novation process with the Defense contracting management office.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. The offering is being sold to accredited investors under an exemption from registration requirements, and as such, no registration statement is being filed with the Securities Exchange Commission.
About Cyclone Power Technologies
Cyclone Power Technologies is the developer of the award-winning Cyclone Engine – an all-fuel, clean-tech engine with the power and versatility to run everything from waste energy electric generators and solar thermal systems to cars, trucks and locomotives. Invented by company founder and CEO Harry Schoell, the patented Cyclone Engine is an eco-friendly external combustion engine, ingeniously designed to achieve high thermal efficiencies through a compact heat-regenerative process, and to run on virtually any fuel -- including bio-diesels, syngas or solar -- while minimizing the release of greenhouse gases and irritating pollutants into the air. The Cyclone Engine was recognized by Popular Science Magazine as the Invention of the Year for 2008, and was presented with the Society of Automotive Engineers’ AEI Tech Award in 2006 and 2008. Additionally, Cyclone was named Environmental Business of the Year by the Broward County Environmental Protection Department. For more information, visit www.cyclonepower.com.
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Safe Harbor Statement
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.