Enerpulse Technologies, Inc. Closes Bridge Financing
ALBUQUERQUE, NM-(Marketwired - Aug 1, 2016) - Enerpulse
Technologies (OTC PINK: ENPT), a developer and manufacturer of
ultra-high performance spark plugs, announced today that it has
closed a $402,500 bridge financing (the "Bridge Financing"). The
Bridge Financing contemplates a possible a second closing of an
additional up to $300,000 by September 27, 2016. Passaic River
Capital, LLC acted as lead investor and the board of directors and
management participated in the Bridge Financing.
The Company will also seek to raise additional funds in the
fourth quarter of 2016 as it prepares to ramp up manufacturing of
its patented, natural gas industrial spark plugs.
Craig Porter, Enerpulse's Chairman stated, "Securing sufficient
funding will enable us to complete our ongoing tests with
industrial natural gas customers and advance our commercial
efforts. This Bridge Financing marks the successful completion of
the first step of our funding strategy."
Pursuant to the terms of the Bridge Financing, the Company
issued two tranches of secured convertible promissory notes with an
exercise price of $0.01: a $150,000 senior tranche at 10% and a
$252,500 subordinated tranche at 15%. In addition, all outstanding
warrants with "full ratchet" anti-dilution protection were
exchanged for common stock, simplifying the company's capital
structure and preparing it for a growth phase.
The company also secured the right to force conversion of all
promissory notes, new and old, if, by the end of calendar 2016, the
company raises at least $1.5 million dollars in a qualified
financing.
"This is a very good day for Enerpulse," said Liore Alroy, the
Managing Member of Passaic River Capital, LLC. "The company raised
cash to fund its operations, substantially reduced the derivative
liabilities associated with outstanding warrants, and gained a
pathway to settle all of its promissory notes, new and old."
Mr. Alroy added, "Enerpulse is a great company, and Lou Camilli
is the real deal - a bona fide entrepreneur with an almost
Edisonian knack for innovation. He and his team of engineers have
harnessed a physical phenomenon in useful and elegant forms that
have a broad and attractive range of markets. They have dug an IP
moat around their technology and those forms, and they continue to
deepen and broaden that moat every day. Their operation, though
small, is efficient and it delivers a high quality product to the
market with very low error rates."
Mr. Camilli, the Chief Technology Officer and President of
Enerpulse Technologies, noted that, "Our plasma-based, Pulstar plug
for automobiles is already proven - DSPORT Performance - Tech
Magazine recently tested the plug and, in their July 2016 issue,
called it 'a no brainer.' Now, our plug for natural gas fuels is
being actively tested by industrial scale customers who are excited
by the real prospect of using Enerpulse plugs to improve engine
performance and stability, and to reduce engine downtime, emissions
and fuel consumption."
Bryan Templeton, Chief Financial Officer of the company added,
"Enerpulse is on the verge of securing some very large commercial
opportunities. Adequate capital is the key element we need for
success. With this transaction, the path to raising it has become
shorter and clearer."
About Pulstar Spark Plugs
Pulstar Spark Plugs use an internal capacitor to create an
intense nano-second burst of energy upon spark formation,
saturating the fuel with combustion enhancing plasma. The ability
to produce large amounts of highly-reactive plasma allows Pulstar
Spark Plugs to improve ignition and combustion of fuels with high
flash-points such as natural gas. Testing of existing Pulstar Spark
Plug models in various natural gas fueled engines has shown fuel
efficiency gains of up to 2.8%, emissions reduction of up to 8% and
increased stability as measured by an improvement in the
Coefficient of Variation of Indicated Mean Effective Pressure (CoV
of IMEP) of up to 17%.
About ENERPULSE (OTC PINK: ENPT)
Enerpulse Technologies, Inc. is a publicly traded company
headquartered in Albuquerque, N.M. Founded in 2004; the company
develops and manufactures ultra-high performance, low emissions
ignition products through the application of pulse power
technology. Enerpulse is currently commercializing a proprietary
plasma spark plug technology called n-PAC that significantly
improves the performance, fuel efficiency and emissions of internal
combustion engines under the brand name Pulstar to Automotive OEMs,
the natural gas engine market and the commercial car and motorcycle
aftermarket. Pulstar is available through more than 12,000
store-based retailers and most major internet-based retailers in
North America. For more information on Enerpulse, please call
888-800-6700 or visit www.enerpulse.com.
About Passaic River Capital, LLC
Passaic River Capital is a special situations investment and
consultancy business based in New Jersey that provides creative and
complete financing solutions to our clients, partners and
affiliates.
Safe Harbor/Forward-Looking Statements
This news release contains "forward-looking statements" as that
term is defined in Section 27(a) of the United States Securities
Act of 1933, as amended and Section 21(e) of the Securities
Exchange Act of 1934, as amended. Information provided by the
Company such as online or printed documents, publications or
information available via its website may contain forward-looking
statements that involve risks, uncertainties, assumptions, and
other factors, which, if they do not materialize or prove correct,
could cause its results to differ materially from historical
results, or those expressed or implied by such forward-looking
statements. All statements, other than statements of historical
fact, are statements that could be deemed forward-looking
statements, including statements containing the words "planned,"
"expects," "believes," "strategy," "opportunity," "anticipates,"
and similar words. These statements may include, among others,
plans, strategies, and objectives of management for future
operations, marketing and sales; any statements regarding proposed
new products, services, or developments; any statements regarding
future economic conditions or performance; statements of belief;
and any statements of assumptions underlying any of the foregoing.
These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially,
including market conditions, risks associated with the cash
requirements of our business and other risks detailed from time to
time in our filings with the Securities and Exchange Commission,
and represent our views only as of the date they are made and
should not be relied upon as representing our views as of any
subsequent date. We do not assume any obligation to update any
forward-looking statements.
Contact Information
Contact InformationFor further information, contact:Bryan
TempletonChief Financial OfficerEnerpulse Technologies,
Inc.505-999-2006btempleton@enerpulse.com