Aura Systems Continues to Work With Investment Firm Trautman Wasserman on New Financing
EL SEGUNDO, Calif., April 19 -- Aura Systems, Inc. (BULLETIN BOARD: AURA) confirmed today that it continues to work with investment firm Trautman Wasserman & Co., Inc. towards a private placement of convertible securities to raise critical financing, and that it has continued to receive interim bridge financing from its secured lenders. The Company also confirmed that it has terminated discussions with Universal Credit regarding an investment by Universal Credit in the Company. The Company has reserved its rights with respect to the actions of Universal Credit in failing to provide promised funding.
Recently, the Company authorized a new issue of Series B Preferred Stock, intended to be used in a transaction with Universal Credit. The preferred stock would have been convertible into common stock at a price of $0.024 per share. Such new preferred stock, or a different security issue, may be utilized in the private placement. Aura remains committed to obtaining financing to continue operations on the best available terms, which terms may provide a significant investor or investors a majority interest in the Company. The Company expects to complete the new financing within the next four weeks. There can be no assurance, however, that the Company will raise new financing.
The Company's headquarters facility continues to be subject to a pending foreclosure, which has been postponed and is currently scheduled for May 3, 2004, absent alternate arrangements satisfactory to the mortgagor. The Company is actively seeking a buyer for the facility.
About Aura Systems
Aura Systems Inc., an ISO 9001 certified company, is a technology leader in mobile power. The company develops and sells AuraGen(R) mobile induction power systems to the industrial, commercial and defense mobile power generation markets. The Company's unique and patented energy solution is the only proven, commercially available pure sine wave power system that can continuously provide thousands of watts of power at low engine speed, and is fully integrated under the vehicle hood. The AuraGen(R) is capable of generating full power up to 8500 watts at all engine speeds including enhanced engine idle speed for gasoline engines and at idle speed for bigger diesel engines. The AuraGen(R) combines sophisticated mechanical and electronics design, advanced engineering and break-through electromagnetic technology to produce a highly reliable and flexible mobile power generating system that creates alternating current (AC) and direct current (DC) electricity, both with and without the engine on. For more information about the Company's AuraGen(R) product visit the company's website at http://www.aurasystems.com/.
This press release contains certain forward-looking statements and information based on the beliefs of Aura's management as well as assumptions made by, and information currently available to Aura's management. Such statements reflect the current views of Aura with respect to future events and are subject to certain risks, uncertainties, and assumptions, including risk factors identified in Aura's 10-K and other SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Aura undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
For further information, please contact: Neal Meehan, Chairman and CEO of Aura Systems, Inc., +1-310-643-5300, nmeehan@aurasystems.com; or Doug Greenwood, Partner & Managing Director of Investment Banking, of Trautman Wasserman & Co., Inc., +1-212-220-5135.