AXIAL VECTOR ENERGY CORPORATION ANNOUNCES SUCCESSFUL $1.2 MILLION DIRECT OFFERING OF EQUITY UNITS. DUBAI, United Arab Emirates (MARKETWIRE) – April 28, 2010 - Axial Vector Energy Corporation ("AVEC") (Pink Sheets: AXVC) (Frankfurt: BAE1) announced today that it executed $1.2 million of Subscription Agreements with European, North American and Arabian Gulf investors for the sale of approximately 12 million restricted equity units at $.10 per unit. Each equity unit is composed of one share of restricted AVEC common stock and one warrant. The warrants allow investors to purchase one share of restricted AVEC stock at a price of $.50 per share for a period of 24 months. The $.50 warrant is callable under certain conditions. Net proceeds will be approximately $1.2 million. The majority of the transaction has been closed and is anticipated to be fully closed on May 5, 2010, subject to customary closing conditions. A call on the warrants will provide the company with an additional $6.0 million. Stated AVEC Chairman Sam Higgins, "This $1.2 million allows us to pay off our liabilities and invest immediately to achieve full SEC reporting, appoint directors, fund communication with the investment community and pay for a move to a more senior exchange. The balance of approximately $800,000 will be used to finance the "go to market cost" of licensing our "Green and Clean" family of multi fuel engines, generators, electric motors and "GENSETS". All of which are the most environmentally friendly and fuel efficient in their market category." We anticipate a slight ramp up in our current $55,000 per month burn rate, offset by a substantial increase in revenue. In addition to providing necessary cash reserves, our newest institutional and individual investors bring a high a degree of business acumen and are actively working to help close on revenue for the Company. We hope to be able to announce the first resultant revenue May 10th after our second product demonstrations for prospective licensees and customers at our facility in Virginia Beach Virginia. AVEC CEO Sanjay Chhaunker added, "If our revenue projections hold true, this round of required equity financing should be our last as we anticipate the first cash flow positive, profitable year in the Company’s history. The economic downturn, which began in August 2007, made it extremely difficult to capitalize development with undesired dilution but, armed with whole new product lines and several exciting joint ventures, we see far better days directly ahead. Our engine, generator and related control products appear to be favorably differentiated, with their smaller form factor, lighter weight, reduced acquisition, total cost of ownership and reduced dependence on fossil fuels. We also believe that they will prove to be more reliable, available, maintainable, useable, durable and transportable than competing products. We anticipate that this will translate into accelerating, year over year, intrinsic value, market share, revenue and profit gains on a per share basis." About Axial Vector Energy Corporation Axial Vector Energy Corporation (AVEC) is a global solutions provider that owns, develops and licenses revolutionary internal combustion engine and electric power generator technologies that have unlimited potential in military, industrial and commercial applications. AVEC and its partners are positioned to become unrivalled leaders in international engine and energy markets with technologies that produce more efficient, cost effective, environmentally sensitive and versatile solutions for use in a wide variety of important applications around the world. The company also owns 40% of Petro Avec. For Further Information Please Contact: Axial Vector Energy Corporation
|