Legend Power Systems Inc. Also Secures $2.3 Million Line of Credit, Burnaby, British Columbia – Legend Power Systems Inc. (TSX.V: LPS) (“Legend Power” or “the Company”) today announced that it has finalized a financing agreement with Royal Bank of Canada (RBC) for the bank to provide lease financing to qualified customers purchasing Legend Power’s Electrical Harmonizer-Automatic Voltage Regulator (AVR) energy conservation device.
Under the terms of the lease agreement, RBC’s leasing department has agreed to provide qualified Legend Power customers with capital leases for up to 100 per cent of the cost of an Electrical Harmonizer-AVR net of rebates and grants for lease terms ranging from 24 to 60 months. Financing can include equipment and extended warranty.
“The ability to lease the Electrical Harmonizer-AVR is a huge incentive for companies looking to reduce their energy costs and minimize their environmental footprint,” said Gerry Gill, Chairman and CEO, Legend Power Systems Inc. “In conjunction with available incentive funding from provincial utilities, this financing program will enable Legend Power customers to offset their lease payments through energy savings making the entire transaction cash-neutral for most customers. At the end of the lease term, the customer will own the equipment outright.”
In addition, Legend Power finalized a $2.0 million conditional operating line of credit with RBC as well as a $300,000 revolving lease line of credit that will allow the Company to lease capital assets, which will free up working capital.
Legend Power’s patented energy conservation device consisting of an Electrical Harmonizer and an Automatic Voltage Regulator (together, the “Electrical Harmonizer-AVR”) has been proven to help companies reduce electricity consumption by seven to ten per cent through “voltage optimization.” The Electrical Harmonizer component adjusts the incoming voltage to the optimum operating level for each facility (as dictated by an extensive pre-installation assessment) and operates at an efficiency of greater than 99.5 per cent. The AVR component enables the Harmonizer to automatically adjust the level of voltage optimization in harmony with load fluctuations and will default to supply assurance mode in the event the voltage supply falls below the optimal minimum.
The Company has 22 Electrical Harmonizer installations in British Columbia and two in California. B.C. installations include Canada Post in Vancouver and Victoria, BC Hydro’s facilities on Dunsmuir in Vancouver, Edmonds in Burnaby and their Nanaimo facility, IKEA in Richmond, shopping malls such as Il Mercato and Sunshine Hills, schools and other facilities. These installations have saved over $1 million in power consumption and eliminated over 10,000 tones of greenhouse gas emissions.
The Electrical Harmonizer-AVR is eligible for incentive funding under the BC Hydro Power Smart Partners’ Program in British Columbia. Under this program, BC Hydro will pay up to 60 per cent of the cost of the technology to qualified customers which dramatically improves the payback incentive for companies utilizing this technology. The Electrical Harmonizer-AVR also qualifies for incentive funding in Ontario of up to 40 per cent under the Building Owners and Manager’s Association’s (BOMA) Conservation and Demand Management (CDM) program.
The Electrical Harmonizer is available in 400 amp to 1,500 amp sizes. Cost of the technology varies based on unit size, prevailing electricity rates, anticipated annual savings and complexity of the installation. Unit size is based on peak demand over the previous 24 months. The cost of a turnkey installation of an Electrical Harmonizer-AVR varies widely but typically costs range from $60,000 to upwards of $250,000 per unit.
About Legend Power Systems Inc.
Legend Power Systems Inc. is a leading electrical energy conservation company that manufactures and markets a patented device to help commercial and industrial customers achieve significant energy savings through voltage optimization. Legend Power’s Electrical Harmonizer-Automatic Voltage Regulator (AVR) eliminates inefficiencies by delivering the optimal level of voltage a user needs. Most customers receive higher voltage levels than required at certain points of the grid from electrical utilities. Higher than nominal voltage can affect the lifespan of electrical equipment and result in high monthly utility bills. By delivering the optimal voltage to the user, Legend Power’s Electrical Harmonizer-AVR helps companies reduce their electricity bills, maintenance costs and greenhouse gas emissions while increasing the life of electrical equipment. The technology also decreases capital and operating costs for electrical utilities.
Forward Looking Information
This release and referenced materials contain forward looking statements, within the meaning of the “safe-harbour” provisions of the Private Securities Act of 1995, which are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause actual results to differ materially include: rapid technological and/or market changes in the industry including actual electrical billing rates; the adequate protection of the Company’s proprietary rights; and other factors described in the Company’s regulatory filings. Although we believe the expectations reflected in our forward looking statements are reasonable, individual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.
For further information, please contact:
Corporate Development Manager
Legend Power Systems Inc.
Living Communications Inc.
604 657 8234
Ross Sullivan/Stephanie Thatcher
604 689 5559
LEGEND POWER SYSTEMS INC.
8618 Commerce Court
Burnaby, BC V5A 4N6
604 420 1500