WESLEY CHAPEL, FL--(Marketwire - Dec 20, 2012) - HPEV, Inc. (OTCQB: WARM), an innovator in thermal dispersion technologies and their application to a wide range of products, announced that it has closed the first tranche of a $1 million equity financing.
"The financing, from private investment company Spirit Bear Limited, consists of two $500,000 tranches of preferred shares that are convertible into common stock, and warrants. Further, the warrants, to remain in effect, allow the Company to force exercise upon achieving certain objectives, which would expand Spirit Bear's investment by up to an additional $3.4 million in two tranches of $1.4 million and $2 million respectively," noted the Company's president, Theodore Banzhaf.
Jay Palmer, president of Spirit Bear Limited, commented, "We have spent a significant amount of time and resources to understand the Company's technology, management relationships, expertise in the industry, and the value proposition that HPEV's patented technology affords its customer base. As a result, we are committed to the long term success of the Company and have chosen to make these direct investments at this stage in the Company's development."
HPEV has been granted five patents and has eight patents pending. These patents cover the application of the Company's heat dispersion technology for use in the manufacture of a number of products, including motors and generators, pumps, bearings and hybrid vehicles. Heat is often destructive and can dramatically shorten the life of a machine such as a motor or generator. HPEV's technology improves the removal of heat and, in many cases, eliminates the need for expensive heat dispersion methods, such as liquid cooling. Thus, HPEV's technology improves product lifetime and reduces manufacturing costs.
Further, a proposal to update government and industry regulations to comply with standards set by NEMA (the National Electrical Manufacturing Association), is awaiting adoption. The new regulations will dictate higher efficiency standards for electric motors and generators and, if adopted, implementation of these higher standards will begin in 2015. To comply with the new regulations, manufacturers will likely be forced either to change their fundamental motor and generator designs, or to incorporate elaborate cooling schemes and higher cost materials. In either case, original equipment manufacturers (OEMs) will incur significantly higher costs related to the retooling of production lines and the procurement of higher cost materials. HPEV's patented thermal technology, however, offers a solution to OEMs that will help them reduce costs below their current levels, while still meeting the new NEMA standards.
"Worldwide annual sales of electric motors and generators are in excess of $70 billion. HPEV's technology should enable motor/generator companies to lower costs and improve efficiencies. It also provides dry pit submersible motor solutions for drinking and waste water management as well as an innovative application for mobile auxiliary power generation. We've been in talks with the global leaders in motor and generator manufacturing for more than a year and expect our technology to be instrumental in changing the cost structure and the efficiency profile of the industry," said CEO, Tim Hassett.
About HPEV, Inc.
HPEV, Inc. is an intellectual property and product development company with expertise in thermal dispersion technologies and their application to various product platforms. The Company is currently commercializing its patented thermal technology and has additional patents-pending for various applications of its proprietary heat removal technologies. The markets that will be addressed by these technologies include myriad industries such as pumps, fans, compressors, batteries, motors, generators and bearings.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on plans and expectations of management and are subject to uncertainties and risks that could affect the company's plans and expectations, as well as results of operations and financial condition. A listing of risk factors that may affect the company's business prospects and cause results to differ from those described in the forward-looking statements can be found in company reports and documents filed with the Securities and Exchange Commission. The company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.