Axial Vector Energy Corp. today updated the investment community with recent developments concerning its business. Two days ago, the company was told its Credit Agreement from its primary lender, Emirates International Capital Advisory, was cancelled. Consequently, current plans and related expenses on listing the equity on a higher market have been temporarily delayed.
However, the company has been negotiating with perspective new investors who have already agreed to subscribe to a new private placement, which would allow continuation and completion of bringing the company’s engines and generators to market. A bridge loan of $110,000 has already been received and transferred to the attorneys representing AVEC in its 4-year-old litigation concerning Transporter, Inc. The company continues to believe the case is without merit and will now proceed to trial on the issues over the bankrupt transporter software purchase.
According to the press release, AVEC company representatives recently completed a site visit to the Engine Tec Inc. testing facility. The workhorse engine with its newly designed piston system has been re-assembled and is creating power. All other GENSET component systems have now been finalized, including the 100kW generator, rectifier, inverter, and engine management system.
Mr. Sanjai Chhaunker, President of Axial Vector, commented, “While we are disappointed in the termination of our current credit agreement, we are pleased that other investors having conducted their own recent site visit are willing to support a re-capitalization of the company.”
Mr. Chhaunker added, “In the interest of fairness to all of our long-term shareholders, we are offering the chance to participate in the lowest cost financing in the company’s history. The private placement is set at $0.10 per share for a total of $1,000,000.
“The company has sourced and negotiated additional projects which can be acquired immediately on completion of an interim finance agreement. While the company is confident that its engines and generators will meet or exceed its original projections in both sales and profitability, the board has authorized these additional projects capable of generating revenue in energy related industries immediately,” he concluded.
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