Azure Closes Multimillion Dollar Financing

Azure Dynamics Corp. of Toronto, Canada, developer of hybrid electric powertrains for commercial vehicles, has closed a private placement financing led by Kingsdale Capital Markets Inc. for $10.7 million.

“The closing allows Azure to access up to $5 million of previously announced Technology Partnership Canada (TPC) funding, subject to TPC conditions,” says D. Campbell Deacon, chairman and CEO of Azure. “I am very pleased with this result as it allows Azure to focus on development and customer delivery issues as we proceed through this final phase to commercialization.”

The private placement consisted of 25,382,126 units of the company at a price of $0.42 per unit. Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at $0.62 per share for up to one year after the closing of the offering. The purpose of the financing is to provide the company with funds needed for immediate liquidity and working capital requirements and to redeem, if necessary, up to $2,216,000 principal amount of the company’s issued and outstanding convertible debentures. The closing of the offering triggers an obligation of the company to offer to redeem the debentures.

All dollar amounts represent Canadian dollars.