SOURCE: Cyclone Power

October 07, 2014 09:00 ET

Cyclone Power Technologies' Waste Heat Subsidiary Completes $1.3 Million Round of Funding

POMPANO BEACH, FL--(Marketwired - Oct 7, 2014) - Cyclone Power Technologies Inc. (PINKSHEETS: CYPW), developer of the all-fuel clean-tech Cyclone Engine, announced that its subsidiary WHE Generation Corp. ("WHE GEN") has closed the initial sale of its Series A Common Stock Offering in the amount of $1.3 million. The financing was provided by approximately 40 individual accredited and strategic investors. 

As a closing condition to the transaction, WHE GEN repurchased 2,083,333 shares of its common stock from Cyclone Power for an aggregate price of $500,000. This purchase price was paid $350,000 at closing and the balance when WHE GEN reaches $1.75 million in its $2.5 million total offering. Cyclone also expects to receive its licensing fee for WHE GEN of $175,000 on or before October 15, 2014. A material portion of the proceeds of the stock sale to WHE GEN will be used by the Company to reduce liabilities and strengthen its balance sheet. The Company still owns approximately 2.1 million shares in WHE GEN, representing just under 20% of the total issued and outstanding common shares of that subsidiary. The licensing agreement calls for royalties to be paid to Cyclone Power for 20 years with options for renewal.

The Series A round financing was described in the Company's Separation Agreement with WHE GEN, approved by Cyclone's Board of Directors and signed in July. The closing of the Series A financing of its subsidiary marks a material step forward in Cyclone's long-range plans of building its licensing and manufacturing business model on a worldwide basis, establishing new revenue streams, and growing its intellectual property portfolio. 

The securities which have been offered in the Series A Round were not registered under the Securities Act of 1933, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

About Cyclone Power Technologies
Cyclone Power Technologies is the developer of the award-winning Cyclone Engine -- an all-fuel, clean-tech engine with the power and versatility to run everything from waste energy electric generators and solar thermal systems to cars, trucks and locomotives. Invented by company founder and CTO Harry Schoell, the patented Cyclone Engine is an eco-friendly external combustion engine, ingeniously designed to achieve high thermal efficiencies through a compact heat-regenerative process, and to run on virtually any fuel -- including bio-diesels, syngas or solar -- while emitting fewer greenhouse gases and irritating pollutants into the air. The Cyclone Engine was recognized by Popular Science Magazine as the Invention of the Year for 2008, and was presented with two Society of Automotive Engineers' AEI Tech Awards. Additionally, Cyclone was named Environmental Business of the Year by the Broward County Environmental Protection Department. For more information, visit www.cyclonepower.com.

Follow Cyclone on Facebook: http://www.facebook.com/CyclonePowerTechnologies 
And Twitter @Cyclonepower

Safe Harbor Statement
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

Contact Information

  • Cyclone Power Company Contact
    Frankie Fruge
    President
    Rob Wilson
    Investor Relations
    Tel: 954-943-8721
    Email Contact
    Email Contact

    WHE GEN contact
    Christopher Nelson
    CEO
    Tel: 305-439-5559
    Email Contact