American Power Group Corporation (APG) has announced the completion of a US$2 million private placement of 10% Series B Convertible Preferred Stock with Arrow, LLC, an investment vehicle for Longbow Technology Ventures.
The Series B Convertible Preferred Stock has a 10% annual dividend, payable quarterly at the company's option in cash or in common stock and is convertible to common stock at a conversion price of US$0.40 per share.
Matthew Van Steenwyk, Managing Director of Longbow Technology Ventures commented: "We are enthusiastic about the opportunity to work with the APG team as well as provide the capital necessary to accelerate several key revenue generating initiatives. The key to Longbow's continued success is pragmatic, technology focused investments. We do our homework and are constantly looking for unique, market changing technologies that have passed concept validation and are poised for accelerated revenue growth. We believe that APG provides the best dual-fuel conversion technology, at the lowest total cost of ownership available in the market."
Van Steenwyk added: "We are traditionally patient, long term investors, especially when presented with an opportunity like the one we see with APG and one which we believe will benefit from the strategic relationships we can bring to the table. We were also very pleased to see their recently announced initiative to begin co-marketing efforts with the major national and regional natural gas fueling suppliers. It provides validation that the natural gas fueling industry is seeing what we do in APG's dual fuel solution, a viable mainstream alternative approach to consume the significant supply of domestically produced natural gas."
Lyle Jensen, APG’s CEO, said: "We are pleased that our patented Turbocharged Natural Gas® technology has attracted the investment and strategic business support of the team from Longbow Technology Ventures. They bring much more than capital to the table and we look forward to working with them to open new strategic partnership doors as well as accelerating several key revenue generating initiatives.
"We intend to a significant portion of the proceeds to accelerate four key vehicular centric initiatives which we believe will positively impact our revenue growth and continue to differentiate us a leader in the marketplace."
The four initiatives are:
- EPA - Intermediate Useful Life (IUL) Approval Initiative
- Expanded Vehicular Sales and Marketing Initiative
- California CARB Approval Initiative
- International ISO Approval Initiative
Market leading position
Jensen concluded: "With the close of this strategic capital infusion and the recently announced expansion and extension to 2021 of our new US$3.2 million credit facility with Iowa State Bank, I want to acknowledge the leadership and excellent work of our Chief Financial Officer, Chuck Coppa, who has helped to keep APG on sound financial footing while we continue to expand our market leadership position with the remaining handful of approvals and certifications that we need to secure. Our previously discussed scalability objectives in 2015 and 2016 can now remain on track as we target full dual fuel commercialisation in the United States and around the world."
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/small-scale-lng/02122014/apg-completes-private-placement-with-arrow-1895/