Torvec Completes $5.0 Million Private Placement
March 28 2014 - 3:38PM
Richard A. Kaplan, Chief Executive Officer of Torvec, Inc.
(OTCQB:TOVC), announced today that the Company has raised $5.0
million in a private placement transaction involving a new series
of preferred stock. In connection with this investment in the
Company, a total of 25,000,000 shares of Series C-2 Voting
Convertible Preferred Stock were issued to a small group of
investors.
As part of the transaction, the Company has confirmed that it
intends to raise up to an additional $1.0 million within the next
several months with various accredited investors, including certain
of the Company's directors, through the issuance of shares of a new
series of preferred stock to be designated as Series C-3 Voting
Convertible Preferred Stock at a price that is yet to be
determined.
The Company plans to use the proceeds raised to continue the
development and marketing of its technology for commercialization,
including the IsoTorque® differential and the Torvec hydraulic
pump.
Mr. Kaplan stated, "We are extremely pleased with the completion
of this equity raise, as it provides us with the financial support
we need to continue our development work toward commercializing our
promising technologies. We are optimistic that we will be able to
provide this investor group, and all of our shareholders, with an
outstanding return on their investment."
The Company's Series C-2 Preferred shares have a liquidation
preference at their stated value per share, that ranks pari passu
with the Company's existing Series C Voting Convertible Preferred
shares, and is senior to the Company's common stock, and its Class
A Non-Voting Cumulative Convertible Preferred Shares and Class B
Non-Voting Cumulative Convertible Preferred Shares. The liquidation
preference is payable upon a liquidation, dissolution or winding up
of the Company, whether voluntary or involuntary, or upon a deemed
liquidation of the Company. The Series C-2 Preferred shares have no
right to receive preferred dividends and have no redemption right
but are entitled to participate, on an as converted basis, with
holders of outstanding shares of common stock in dividends and
distributions on liquidation after all preferred shares have
received payment in full of any preferred dividends or liquidation
preferences, and vote with the common stock on an as-converted
basis.
Forward-Looking Statements
This news release may contain forward-looking statements
regarding Torvec's future economic performance and prospects that
are subject to risks and uncertainties. These risks and
uncertainties could cause actual results to differ from those
described in such statements. Such risks and uncertainties include
those described from time to time in Torvec's SEC reports,
including its most recent Annual Report on Form 10-K.
About Torvec, Inc.
Torvec, Inc. develops and markets advanced automotive and
hydraulic power technologies. Its IsoTorque® differential sets the
bar for differential design. The IsoTorque improves the traction,
handling, performance and safety of a vehicle without the need for
complex electronics and clutches that wear out. The Torvec
hydraulic pump is a breakthrough in hydraulic design, which
delivers unsurpassed performance, all in a package that is smaller
and lighter than existing technologies. For additional information,
please visit www.torvec.com.
CONTACT: Robert W. Fishback
bfishback@torvec.com
(585) 254-1100 x310
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