SOURCE: McKenzie Bay International

October 16, 2008 11:30 ET

McKenzie Bay International (MKBY), MTI Energy & YA Global Agree to Settlement

MIDLAND, MI--(Marketwire - October 16, 2008) - McKenzie Bay International Ltd. (PINKSHEETS: MKBY), YA Global Investments L.P., and MTI Energy Management / Lighting Specialists, Inc. entered into an escrow and settlement agreement on August 21, 2008.

YA Global Investments L.P., formerly Cornell Capital Partners L.P., has accepted an offer to pay off their outstanding debentures that include a partial cash payment, return of 14,367,426 McKenzie Bay pledge shares, replace 3,500,000 McKenzie Bay warrants, and cancel all other McKenzie Bay warrants.

McKenzie Bay has agreed to amend YA Global warrants; consent to the installation of new board members consisting of Michael Pollakowski, Philip Mortimer, Kevin Cook, Dilip Nigam, Mark Cecil, and Lawrence Leete; accept the resignation of the current board at the end of escrow. McKenzie Bay has agreed to move forward using Envitech Energy and Analytical Design Service Corporation technologies to produce WindStor® vertical axis wind turbines.

McKenzie Bay has appointed Michael Pollakowski as agent to obtain funding through the use of a subscription agreement for this settlement agreement that also includes the completion of the Ishpeming, Michigan WindStor® installation, settlement of all MKBY debts, preparation of financial statements and required SEC filings.

MTI has agreed to dismiss its Federal lawsuit towards McKenzie Bay; secure WindStor® technology rights for McKenzie Bay; and issue a 5% ownership interest in its affiliated power sales company, Clean Green Energy LLC to MKBY.

As part of the settlement, affidavits and releases of current board members, prior board members, and prior employees have been executed, and current and prior board members have agreed to return certain MKBY shares.

Settlement agreements and all additional documents required for closing by all parties have been or are being placed in escrow. There can be no assurance that remaining outstanding terms and conditions of the settlement agreements will be completed in the agreed upon time frame for a closing "release of escrow documents" in the fourth quarter of 2008. Outside events, general economic conditions, and other factors may have materially adverse impact upon this transaction.

For further information contact investor relations, Richard Kaiser, 757-306-6090

Certain statements made in press release constitute forward-looking statements and do not guarantee future performance. Actual results or developments may differ materially from projections in forward-looking statements. Forward-looking statements are based solely on estimates and opinions of management at time statements are made.

Contact Information

  • Contact:
    YES INTERNATIONAL
    757-306-6090