VANCOUVER, March 18, 2014 /CNW/ - Legend Power Systems Inc. (TSX-V: LPS) is pleased to announce the adoption of a second incentive program to
encourage the early exercise of further outstanding warrants. The
warrants subject to the program are exercisable to purchase 2,201,000
shares for $0.15 per share until July 31, 2014 and then at $0.30 per
share until July 31, 2016 (the "Original Warrants").
To encourage the early exercise of the Original Warrants, the Company
has amended the terms of the Original Warrants such that each holder
who exercises Original Warrants before April 17, 2014 (the "Deadline")
shall receive an additional non-transferable share purchase warrant (an
"Additional Warrant"). Each Additional Warrant will entitle the holder
to acquire one common share of the Company at an exercise price of Cdn
$0.30 until July 31, 2016. If a holder does not exercise the Original
Warrants before the Deadline (or only partially exercises them), the
Original Warrants (or the portion not exercised) shall continue to be
exercisable to purchase only common shares of the Company on their
original terms.
The common shares issuable to insiders upon the exercise of the
Additional Warrants will be subject to a four month restricted resale
period. The proceeds from the early exercise of the Original Warrants
will be used for general working capital purposes.
One person who is a director and officer of the Company owns an
aggregate of 172,333 Original Warrants. His participation in the
incentive program and issuance of Additional Warrants constitutes a
"related party transaction" as defined in Multilateral Instrument
61-101 Protection of Minority Security Holders in Special Transactions and TSX Venture Exchange Policy 5.9 Protection of Minority Security Holders in Special Transactions. However, the warrant incentive program is exempt from the formal
valuation and minority shareholder approval requirements of both, as
neither the fair market value of the Additional Warrants to be issued
to, nor the consideration paid by, such director and officer exceeds
25% of the Company's market capitalization.
The incentive program is subject to approval by the TSX Venture
Exchange.
Further to the Company's news release of March 7, 2014 respecting its
other Warrant Exercise Incentive Program for the 8,185,165 warrants
expiring on October 18, 2016, the Company clarifies that the four month
hold period on shares issued upon the exercise of the Additional
Warrants under that program only applies to shares issued to insiders.
About Legend Power Systems Inc.
Legend Power Systems Inc. (www.legendpower.com) is a leading electrical energy conservation company that manufactures
and markets a patented device to help commercial and industrial
customers achieve significant energy savings through voltage
optimization. Legend Power's electrical savings solution helps
companies reduce their electricity bills, maintenance costs, and
increases the life of electrical equipment, while contributing to a
reduction in greenhouse gas emissions.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Legend Power Systems Inc.
