BURNABY, BRITISH COLUMBIA – JUNE 25 2009- As previously announced, Legend Power Systems Inc. (TSX VENTURE EXCHANGE: LPS.V) (the “Company” or “Legend Power”) has entered into a management consulting agreement (the “Consulting Agreement”) with Phoenix Alliance Corp. (“Phoenix”). Pursuant to the Consulting Agreement, Phoenix has agreed to act as Legend Power’s advisor with respect to strategic planning, to provide financial and management consulting services, and to assist it in completing a private placement. Legend Power is targeting a proposed offering of up to $10 million in common shares in the capital of the Company (“Shares”) at a subscription price of a minimum of $0.45 per Share (collectively the “Offering”). Legend Power is seeking this financing to provide working capital to enable it to launch an intensive sales and marketing strategy within North America. Gerry Gill, Chairman and CEO of Legend Power, states:
“We have completed the research and development phase of our business plan and with our strategic partners have been able to complete 22 beta tests with a number of installations of various sizes and configurations all proving energy savings and lower costs to the users, proving our Harmonizer-AVR is commercially viable and ready for the marketplace. We are now positioned to commence the second phase of our business plan which is to complete the implementation of our sales and marketing strategy which we believe will better position Legend Power to be cash flow positive. The Offering is expected to provide the ability to execute this important phase of our business plan and to allow us to continue building value for our shareholders and customers”.
Andrew McKinnon CEO of Phoenix Alliance Corp. states:
“During the due diligence process conducted by our company we quickly became aware of the opportunities for growth that exist for Legend Power’s Harmonizer-AVR technology. We arrived at the conclusion that if Legend Power was capitalized to the extent required to executing this next phase of its business plan it would have the financial resources to build a sales and marketing department for rapid growth which in turn should help Legend power to establish a leading position in the market place. We and Legend Power’s executive team are well along in the process of developing a competitive analysis, a competitive strategy and a sales and marketing plan that includes the personnel buildup required to execute on the plan. Legend Power’s Board and executive team have the skills and experience to lead the company into this exciting new phase of its business model and we are pleased to be part of this opportunity.”
About Phoenix Alliance Corp.
Phoenix Alliance Corp. of Vancouver is a leading business consulting firm and has been instrumental in developing secondary financing strategies for companies in both Canada and the United States. Through its network, Phoenix has introduced its clients to a select group of investors and funds that have invested in many of these clients.
About Legend Power Systems Inc.
Legend Power 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-AVR eliminates inefficiencies by delivering the optimal level of voltage a user needs. Many customers receive higher voltage levels than required at certain points of the grid from electrical utilities delivering higher levels to compensate for line loss across the feeder length. Higher than nominal voltage can negatively 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 customers 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
Statements contained herein that are not based on historical or current fact, including without limitation statements containing the words “anticipates,” “believes,” “may,” “continues,” “estimates,” “expects,” and “will” and words of similar import, constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and in the regions in which the Company operates; history of losses and uncertainty of revenues; ability to obtain required financing; technology changes and/or market changes, including actual electrical billing rates; adequate protection of the Company’s proprietary rights; competition; changes in business strategy or development plans; and other factors referenced in the Company’s filings with Canadian securities regulators. With respect to the Company’s statements regarding the proposed Offering and the Company’s anticipated cash flow position, and Phoenix’s statements regarding the Company’s position in the market place, there are circumstances and factors that may cause these forward-looking statements to materially change. Such circumstances and factors include: the Company may not be able to raise additional capital; the Company may not be able to access sufficient capital for its operations for the implementation of the next phase of its business plan, which may require the Company to delay or abandon some or all of its plans or otherwise forego market opportunities and may make it difficult for the Company to respond to competitive pressure; the Company’s cash requirements may exceed its estimates; the market targeted by the Company may fail to develop, may develop more slowly than expected, or may be successfully and significantly penetrated by competitors; and the Company’s products may not achieve broad market acceptance and sales and revenue targets may not be met. Although the Company believes that expectations conveyed by the forward-looking statements are reasonable based on the information available to it on the date such statements were made, no assurances can be given as to the future results, levels of activity, performance or achievements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company does not assume the obligation to update any forward-looking statements except as otherwise required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
|For further information, please contact:
Gerry Gill, Chairman & CEO
Legend Power Systems Inc.
+ 1 604 420 1500
|LEGEND POWER SYSTEMS INC.
8618 Commerce Court
Burnaby, BC V5A 4N6
+1 604 420 1500