Torvec Raises $6.5 Million
September 26 2011 - 11:09AM
Marketwired
Richard A. Kaplan, Chief Executive Officer of Torvec, Inc. (OTCQB:
TOVC) (PINKSHEETS: TOVC), announced today that the Company has
raised $6.5 million in a private placement of a new series of
preferred stock. The Company has issued a total of 16,250,000
shares of Series C Preferred Stock at a price of $0.40 per share.
As the result of the private placement, a group led by B. Thomas
Golisano, founder and Chairman of Paychex, has taken a major
position in Torvec with its investment of $6.225 million, while
Company directors and executive officers have increased their
ownership through their $275,000 investment.
As part of the same private placement, the investors received
common stock purchase warrants entitling them to purchase up to an
aggregate total of 1,625,000 common shares at 80 percent of the
volume weighted average price of the Company's common stock based
on the 10 trading days immediately preceding the date of exercise.
The warrants are immediately exercisable and have a 10 year
term.
The Company intends to use the $6.5 million raised to continue
developing and intensify the marketing of its IsoTorque® and
Rota-Torque™ technologies for the automotive and commercial pump
industries, including the Company's anticipated entry into the
automotive aftermarket with its patented differential.
Mr. Kaplan said, "We at Torvec are very excited about this
investment. From personal experience, I know that Mr. Golisano
brings far more than money to our Company. His opinions and
insights have served to help create success in many organizations.
His own incredible success through the years is no accident and
coupled with our present board of directors, I believe Torvec will
be extremely well served. These are all world-class people."
Mr. Kaplan also emphasized that the participation by some of the
Company's directors and officers affirms their commitment to the
Company and their expectations concerning its future growth.
The Series C Preferred Shares issued in the private placement
are convertible into the Company's common stock on a 1:1 basis,
have voting rights and a liquidation preference.
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. is a publicly traded company that 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 Rota-Torque pump is a breakthrough in hydraulic
design, which delivers unsurpassed performance, all in a package
that is over 50% smaller and lighter than existing technologies.
For additional information, please visit www.torvec.com.
Robert Fishback 585-254-1100 Email Contact
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