Zongshen PEM Power Systems Inc.
TSX VENTURE : ZPP

Zongshen PEM Power Systems Inc.

October 29, 2007 08:25 ET

CORRECTION FROM SOURCE: Zongshen PEM Power Systems Inc. Announces $30.6 Million "Bought Deal" Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 29, 2007) - One of the syndicate members was inadvertently omitted from the original release sent at 8:05 am ET this morning. The correct and revised release follows:

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Zongshen PEM Power Systems Inc. (the "Company")(TSX VENTURE:ZPP) is pleased to announce that it has entered into an agreement with a group of investment dealers led by GMP Securities L.P. and including Canaccord Capital Corporation, Laurentian Bank Securities Inc., Orion Securities Inc., and Research Capital Corporation, (the "Underwriters"), which have agreed to purchase 10,000,000 Common Shares at a price of C$3.06 per Common Share to raise gross proceeds of C$30,600,000 on a "bought deal" underwritten private placement basis.

The Company also granted the Underwriters an option (the "Over-Allotment Option" and together with the Financing the "Offering") to purchase up to an additional 1,500,000 Common Shares at a price of C$3.06 per Common Share. The Over-Allotment Option is exercisable, in whole or in part, at any time prior to 48 hrs before the Closing Date at their discretion.

The Common Shares to be sold under this Offering will be offered on a private placement basis to Canadian residents who are accredited investors under applicable securities laws, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

The Closing Date is scheduled for November 14, 2007 and the closing of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and any other applicable securities regulatory authorities.

About Zongshen PEM Power Systems Inc.

Zongshen PEM Power Systems Inc. is a public company trading under the symbol ZPP on the TSX Venture Exchange. The Company is engaged in the commercialization of alternate power systems including batteries, fuel cells and solar power, for a variety of consumer and industrial applications. The Company manufactures high quality, environmentally friendly electric motorcycles, electric bicycles and other e-vehicles in China for the domestic and international markets. Zongshen PEM Power System's largest shareholder is Zongshen Industrial Group, one of China's largest manufacturers and distributors of motorcycles, engines, and power equipment.

About Zongshen Industrial Group

Zongshen Industrial Group was founded in 1992, and consists of 30 wholly or majority owned subsidiaries, including Chongqing Zongshen Power Machinery Co., which is listed on the Shenzhen Stock Exchange. The Company employs in excess of 13,000 employees with assets exceeding RMB 4 billion Yuan. Zongshen Industrial Group's engine products include motorcycles, compact cars, speedboats, and general purpose engines. Zongshen Industrial Group currently has an annual production capacity of 2,000,000 motorcycles, 3,000,000 motorcycle engines, 5,000,000 general purpose engines, and 100,000 car engines. Zongshen Industrial Group is an established, leading motorcycle brand in China, with joint ventures with some of the world's leading motorcycle manufacturers.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Contact Information

  • Zongshen PEM Power Systems Inc.
    Ali Mahdavi
    Vice President, Corporate Finance & Investor Relations
    (416) 962-3300 or 1-877-775-8734
    Email: amahdavi@genoa.ca