POMPANO BEACH, FL -- (Marketwire) -- 10/05/12
Cyclone Power Technologies , Inc. (OTCQB: CYPW), developer of the all-fuel , clean-tech Cyclone Engine, announced today that it has signed a common stock purchase agreement with GEM Global Yield Fund Ltd. ("GGYF") for up to $2.5 million in equity financing. GGYF is a $3.4 billion investment fund based in New York, London and Los Angeles. Proceeds from the financing, which will be provided by GGYF over the following 24 months, will be used for technology development and general working capital.
Under the agreement GGYF will purchase Cyclone's common stock at a 10% discount to market prices at the time of purchase. Cyclone will control the timing and amount of any sales of shares to GGYF, subject to average daily volume limitations. GGYF will also receive warrants to purchase up to 5 million shares of Cyclone common stock for five years at a price of $.27 per share, a 125% premium from current market prices. Cyclone will initially file a Registration Statement on Form S-1 to cover shares that GGYF may resell, including the common stock underlying their warrants.
Christopher Nelson, President of Cyclone, commented: "We're thrilled to have GGYF increase tenfold their commitment to Cyclone over the next two years. We will use these funds strategically for development and growth, while being extremely mindful of shareholder value. We believe that this relationship is key to the long-term success of Cyclone."
The securities sold in this private placement have not been registered under the Securities Act of 1933, and may not be resold absent registration under or exemption from such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
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 CEO 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 minimizing the release of 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 .
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