CALGARY, Alberta, Jan. 29, 2007 (PRIME NEWSWIRE) -- Clean Power Technologies Inc. (OTCBB:CPWE) (Frankfurt, XETRA:C1L) (http://www.cleanpowertech.co.uk), a developer of a unique and environmentally friendly alternative hybrid fuel technology, has entered into an Investment Agreement and a Registration Rights Agreement from Dutchess Private Equities Fund Ltd. Under the terms of these agreements, Dutchess will provide an equity line of credit of up to $10,000,000. The initial amount of 10,000,000 common shares by the Company which will be used for the draw down of funds. The registration statement is to provide for the offering of securities on a continuing basis and the Company must use its best efforts to have the registration statement effective within 120 days for the date of the agreements. The agreement further calls for the Company to pay a 1% fee to a registered broker dealer to a maximum of $10,000 on each draw down of funds under the Investment Agreement.
Abdul Mitha, President/CEO of Clean Power. stated, "We require capital in order to continue with our current operations, hybrid development program and to implement our steam hybrid conversions on two Mazda RX8 vehicles. Clean Power selected Dutchess to invest in our company as they understand our business and growth strategy. Dutchess is an ideal financial partner to provide us with requisite capital for both short and medium term as well as opportunistic financing for acquisitions. With Dutchess' funding, we believe we now have the necessary cash flow to meet our goals and objectives. This is a major milestone in the progress and future of Clean Power."
Dutchess Private Equities Fund, LP is a fund engaged in assisting growth companies in all facets of their long-term strategy, by providing capital and progressive business solutions. The fund manages a portfolio of private investments in public equities ("PIPEs"). Dutchess has worked with such companies in the industries of: healthcare, biotechnology, technology, media, communications, oil & gas, textile, defense, precious metals and alternative energy.
About Clean Power Technologies Inc.
Clean Power Technologies Inc. (OTCBB:CPWE) is a developer of a unique and environmentally friendly alternative hybrid fuel technology. Clean Power has put together an impressive engineering team of 7 Professional Engineers which consist of, a Mechanical Vehicle Integration Specialist, a Thermodynamic Specialist, an Engine Management Electronics Specialist, a Vehicle Systems Specialist, a Graphics Designer & Vehicle Builder, a Robotic Engineer and a Control System Specialist. These specialists make up the Clean Power development team and provide significant expertise to enhance the development and implementation for this unique hybrid fuel technology.
Clean Power Technologies Inc. operates out of its own development facility. The state of the art facility is located in England and is completely outfitted with full computational support with Computer Aided Design 3d Modeling software, a fully automated Engine Test Dynamometer. Clean Power anticipates that by the fall of 2007 the planned hybridized Mazda RX8 vehicle will be ready for road use.
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Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in current and periodic reports and other documents filed by Clean Power Technologies with the U.S. Securities and Exchange Commission. Clean Power Technologies undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.