Azure Dynamics Corporation
TSX : AZD
PINK SHEETS : AZDDF

Azure Dynamics Corporation

February 10, 2011 08:39 ET

Azure Dynamics Announces Closing of Bought-Deal Financing Including Over-Allotment Option for Gross Proceeds of CDN$20.1 Million

OAK PARK, MICHIGAN--(Marketwire - Feb. 10, 2011) -

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

Azure Dynamics Corporation (TSX:AZD)(PINK SHEETS:AZDDF), a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles, today announced the successful closing of its previously announced bought deal offering (the "Offering") of 53,030,303 common shares (the "Shares") of the Company at a price of CDN$0.33 per Share. The underwriters also exercised in full their over-allotment option to acquire an additional 7,954,545 Shares at a price of $0.33 per Share. The total offering of 60,984,848 Shares resulted in Azure receiving aggregate gross proceeds of approximately CDN$20.1 million.

"We are pleased by the financial markets' interest in Azure with the successful closing of the financing and the exercise of the over-allotment," said Scott Harrison, Chief Executive Officer of Azure Dynamics. "This transaction provides Azure Dynamics with a stronger balance sheet and the added financial flexibility to capitalize on future opportunities to integrate its technology onto additional market leading commercial vehicles." 

The Company plans to use the net proceeds of the Offering to fund its ongoing product development and commercialization efforts as well as general corporate purposes.

The syndicate of underwriters was led by Raymond James Ltd., and included Cormark Securities Inc., National Bank Financial Inc. and Paradigm Capital Inc.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of Azure in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or unless an exemption from such registration is available.

About Azure Dynamics

Azure Dynamics Corporation (TSX:AZD)(PINK SHEETS:AZDDF) is a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles. Azure is strategically targeting the commercial delivery vehicle and shuttle bus markets and is currently working internationally with a variety of partners and customers. The Company is committed to providing customers and partners with innovative, cost-efficient, and environmentally-friendly energy management solutions. For more information please visit www.azuredynamics.com.

Forward-looking Statements 

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated use of proceeds of the Offering and Azure's business development strategy, projected commercial revenues and product deliveries.

The forward-looking statements are based on certain key expectations and assumptions made by Azure, including expectations and assumptions concerning the use of proceeds from the offering, achievement of current timetables for development programs, target market acceptance of Azure's products, current and new product performance, availability and cost of labor and expertise, and evolving markets for power for transportation vehicles. Although Azure believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Azure can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risk that changing commercial realities may cause Azure to allocate the proceeds of the offering in a manner that is different from the manner indicated in this press release, the risks associated with Azure's early stage of development, lack of product revenues and history of losses, requirements for additional financing, uncertainty as to commercial viability, uncertainty as to product development and commercialization milestones being met, uncertainty as to the market for Azure's products and unproven acceptance of Azure's technology, competition for capital, product market and personnel, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability of management and key personnel, and acquisition integration risk. These risks are set out in more detail in Azure's annual information form which can be accessed at www.sedar.com.

The forward-looking statements contained in this press release are made as of the date hereof and Azure undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The TSX does not accept responsibility for the adequacy or accuracy of this release.

Contact Information