SOURCE: Turbo Power Systems Inc

May 31, 2012 13:04 ET

Subscription for new A-Shares in subsidiary

YUKON, CANADA--(Marketwire - May 31, 2012) -


         Subscription for new A-Shares in subsidiary


Turbo Power Systems Inc ("TPS", the "Company" or the "Group"), a
leading UK based designer and manufacturer of innovative power
solutions, is pleased to announce that two existing holders of A-Shares
in the Company's subsidiary, Turbo Power Systems Limited ("TPSL")
("A-Shares" and "A-Shareholders"), have conditionally agreed to
subscribe for an aggregate of 444,444,444 new A-Shares in TPSL at a
price of 0.45 pence per A-Share to raise GBP2 million of new financing
for the Group (the "Subscription").

As set out in recent announcements, the directors of the Company
(the "Directors") have extensively explored options for addressing the
Company's financial constraints and to secure further working capital
to support the Company's growth prospects. The Directors believe that
the Subscription, split equally between two existing A-Shareholders,
Argun Investments Limited and Island Investments (Securities) Limited,
being at a premium of over 80% to the Company's closing share price on
30 May 2012, is the most appropriate means of securing further
financing at this time.

James Pessoa, Chairman, said: "We are delighted and encouraged that
existing A-Shareholders are signalling their continuing support for
TPS. The capital raised by this subscription will be used to support
the growth of the business, which we continue to believe has strong
prospects".

The Directors consider, having consulted with finnCap Ltd, the
Company's nominated adviser, that the terms of the Subscription being
entered into are fair and reasonable insofar as the Company's
shareholders are concerned.

Click on, or paste the following link into your web browser, to view
the associated PDF document.

 http://www.rns-pdf.londonstockexchange.com/rns/5365E_1-2012-5-31.pdf 


                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

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