MISSISSAUGA, Ontario, March 28, 2005 (PRIMEZONE) -- Astris Energi Inc. (OTCBB:ASRNF), the world's leading alkaline fuel cell (AFC) technology company, announced today that it has closed a convertible debenture financing for gross proceeds of CDN$420,000. The debenture was available for subscription to "Canadian accredited investors" only and included a coupon for 6%, payable in common shares upon conversion or maturity.
The financing was arranged by Toronto investment house Fraser Mackenzie Limited. Each debenture is convertible into common shares at a conversion rate that in no case shall be less than USD$0.20 or more than USD$0.70. The debentures mature on December 10, 2005, 270 days from the date of issuance. Astris intends to file a registration statement. Total net proceeds were CDN$378,000. Fraser Mackenzie Limited, for facilitating the funding, also received 156,000 broker warrants at CDN$0.27 exercisable for a period of two years from the closing date of this transaction. Proceeds from this financing will be used for operations, with a focus on the marketing and demonstration of Astris' line of AFC generators to prospective large strategic partners.
"The debenture provides us with bridge financing that will be used until the previously announced second, larger financing is completed," said Anthony Durkacz, Vice President of Finance. "It will enable us to aggressively pursue channel partners for the commercialization of our line of AFC generators and use the resulting sales orders to drive our production."
About Astris Energi Inc.
Astris is a late-stage development company committed to becoming the leading provider of affordable fuel cells and fuel cell generators internationally. Over the past 21 years, more than $17 million has been spent to develop Astris' alkaline fuel cell for commercial applications. Astris is commencing pilot production of its POWERSTACK(tm) MC250 technology in 2005. Astris is the only publicly traded company in North America focused exclusively on the alkaline fuel cell. Additional information is also available at the company's website at www.astris.ca.
Forward-Looking Statements Any statements in this release that are not statements of fact may be considered "forward looking statements" as that term is defined under securities laws in the United States and Canada. Forward-looking statements are only predictions and may differ materially from actual events or results.