SOURCE: American Power Corp.

American Power Corp.

February 27, 2012 09:00 ET

American Power Corp. Completes $4 Million Equity Facility With Yorkville Advisors

DENVER, CO--(Marketwire - Feb 27, 2012) - American Power Corp. (OTCBB: AMPW) ("American Power" or "the Company") is pleased to announce that it has entered into a Standby Equity Distribution Agreement ("SEDA") with Yorkville Advisors, LLC ("Yorkville"), the US-based alternative investment manager, on behalf of YA Global Master SPV Ltd ("YA Global"). Pursuant to the agreement, the Company may, at its sole and exclusive option, periodically sell to YA Global up to $4 million of newly issued common stock.

"We are extremely pleased to have secured this agreement in the current market conditions and we consider that Yorkville's commitment is a validation of the potential of our flagship Pace Coal Project," commented Al Valencia, President and CEO of American Power. "This new funding agreement provides us with complete flexibility to place shares over a period of time and raise the necessary tranches of capital to fund our exploration activities in Montana. Moreover, it would also limit shareholder dilution by only doing so if and when project milestones are achieved," added Mr. Valencia.

Pursuant to the SEDA, American Power agreed to file with the SEC a registration statement, the effectiveness of which is a condition to the purchase and sale of any shares, with respect to common stock issuable under the SEDA. For full details on the SEDA, please refer to our 8-K filing dated February 24, 2012.

About Yorkville Advisors

Founded in January 2001 by Mark Angelo, Yorkville specializes in providing flexible, innovative debt and equity investments and financing in publicly listed companies in a variety of sectors including mining, oil & gas, healthcare, real estate, manufacturing & shipping and technology.

Yorkville tailors its transactions on an investment-by-investment basis, which may include debt and equity investments, bridge financings, asset backed or SEDA backed notes, equity facilities and straight equity participation.

Yorkville has offices in Jersey City (NJ), Palm Beach Gardens (FL), Denver (CO), London and Hong Kong. For further information about Yorkville Advisors visit: www.yorkvilleadvisors.com.

About American Power Corp.

American Power Corp. is a publicly traded, dynamic energy company based in Denver, Colorado. The Company was established with the focus of acquiring near-term, large-scale coal projects in close proximity to national transportation links. American Power envisions developing the Pace Coal Project, a 29,000 acre coal project located in Judith Basin County, Montana, to support domestic electricity generation. The estimated resources in place, based on exploration work conducted by Mobil Oil Co. (now ExxonMobil Corp.), in several independent studies, range from 172 million up to 410+ million tons of high volatility bituminous B coal.

American Power trades on the OTC BB under the ticker symbol AMPW. Shareholders are invited to contact investor relations toll free at (800) 537-1110 for further information or visit the Company's website at www.americanpowerco.com.

Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this news release include that American Power Corp.'s 29,000-acre leases in Judith Basin County, Montana, have high volatile bituminous B coal in the range of 172 and 410+ million tons. Readers should also refer to the risk disclosures outlined in the Company's quarterly reports on Form 10-QSB, annual reports on Form 10-KSB, and the Company's other disclosure documents filed from time-to-time with the Securities and Exchange Commission available at www.sec.gov.

Cautionary Note to U.S. Investors

The United States Securities and Exchange Commission ("SEC") permits mining companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this document that SEC's guidelines may prohibit us from including in filings with the SEC.

Contact Information

  • Investor Relations Information:
    American Power Corp.
    Toll Free: 1-800-537-1110
    E-mail: Email Contact