REGI U.S., Inc. Receives $10,000,000 Private Equity Credit Line
VANCOUVER, British Columbia--REGI U.S., Inc. (the “Company” or “REGI”) (OTCBB:RGUS) (FWB:RGJ) is pleased to announce that it has obtained a $10,000,000 equity line of credit, arranged by JH Darbie & Co., Inc. of New York.
The equity line of credit may be used to sell common stock to the investor at the discretion of the Company, with a minimum of $150,000 and a maximum of $750,000 for each draw down, over a term of 36 months, at a 15% discount to the market price over the 10 days prior to the draw down date. The equity line of credit also allows the Company to set a threshold price for each draw down below which the Company will not sell securities. The shares of common stock to be issued under the equity line will be registered with the Securities and Exchange Commission. The equity line will not be used until the registration statement is declared effective by the SEC.
The investor also received warrants for a total of 1,000,000 shares exercisable over 5 years with an exercise price of $1.30 per share.
John Robertson, President of REGI U.S., Inc., states, “The Company is now in an excellent position to draw down funds as required, at our option, to fund additional applications for the Rand Cam™/ RadMax™ technology, and to have sufficient funds available to qualify for a proposed listing on the American Stock Exchange or NASDAQ listing.
JH Darbie & Co., Inc., our investment banker, arranged the equity line of credit, and will receive a fee and five year warrants, for the financing.
ABOUT REGI U.S., INC. / REG TECHNOLOGIES INC.
REGI U.S., Inc. owns the U.S. rights to the Rand Cam™/RadMax™ rotary technology that is used in an engine that is a light weight rotary engine with only two moving parts: the vanes (up to 12) and the rotor, compared to the 40 moving parts in a simple four-cylinder piston engine. This revolutionary design makes it possible to produce a total of 24 continuous power impulses per one rotation that is vibration-free and extremely quiet. The Rand Cam™/RadMax™ engine also has multi-fuel capabilities and is able to operate using fuels including gasoline, natural gas, hydrogen, propane and diesel. Reg Technologies Inc., the parent company of REGI U.S., Inc., together with it, is in the process of testing a Rand Cam™/RadMax™ diesel engine for a generator application for hybrid electric cars and for unmanned aerial applications for the U.S. military. For more information, please visit www.regtech.com.
ON BEHALF OF THE BOARD OF DIRECTORS
John Robertson
President
Forward-Looking Statements
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Statements in this press release regarding Reg Technologies/REGI's business which are not historical facts are "forward-looking statements". By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future. There are a number of factors that could cause actual results and developments to differ materially, including the impact of competitive products and pricing, the need to raise additional capital, uncertain markets for the Company's products and services, the Company's dependence on third parties and licensing/service supply agreements, and the ability of competitors to license the same technologies as the Company or develop or license other functionally equivalent technologies.