|By Marketwired .||
|October 2, 2013 09:16 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 10/03/13 -- ZENN Motor Company Inc. (TSX VENTURE:ZNN) ("ZENN" or the "Company") announced today that testing of layers produced by EEstor, Inc. ("EEstor") of Cedar Park, Texas has been conducted by an independent third party and a representative of ZENN was an observer during such testing. ZENN has now received the report from the independent tester and is working to clarify and confirm the information in the report and intends to issue a further press release when this analysis and verification process has been completed.
Under the agreement previously announced on August 7, 2013, ZENN has agreed to purchase 502,344 shares of Series A Preferred Stock of EEStor and certain rights associated with the ownership of such shares in consideration for cash and shares of ZENN. Among other things, the transaction is subject to the completion by ZENN of equity financing to fund the cash portion of the purchase price. ZENN has provided notice to the vendors under such agreement that it is exercising its right to extend the closing date by up to 30 days to allow for completion of the necessary financing. In light of the expected release of testing results, the additional time should allow for updated information to be provided to the market.
ZENN also announced that it has applied to the TSX Venture Exchange for the extension of the expiry date of 2,350,000 warrants issued to investors in connection with its April 13, 2012 private placement financing. The warrants are exercisable at $1.35 and are to expire on October 13, 2013. ZENN proposes to extend such expiry date to October 31, 2013 to allow for testing reports to be communicated and for the possible use of any proceeds from the exercise of warrants to be used as part of the acquisition financing referred to above. The extension of the warrants is subject to TSX Venture Exchange approval.
About ZENN Motor Company Inc.
The Company's goal is to be the provider of leading edge power storage solutions and related technologies to the transportation industry. Technologies and solutions, powered by EEStor's electrical energy storage units (EESU) have the potential to enable OEM and Tier 1 partners to deliver advanced electric transportation solutions to their customers.
Information contained in this release relating to EEStor, Inc. or the energy storage technology being developed by EEStor has not been reviewed by EEStor and EEStor does not assume any responsibility for the accuracy or completeness of such information.
Unless otherwise indicated, public disclosures by EEStor of developments in the commercialization of its energy storage technology have not been independently verified by ZENN. EEStor's energy storage technology is still under development and a number of further development milestones must be achieved before commercial viability can be established. There are significant risks associated with the development of new technologies such as EEStor's energy storage technology and readers are directed to the "Risk Factors" disclosed in ZENN's most recent Annual Information Form filed on SEDAR
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ZENN Motor Company Inc.
Chief Financial Officer
416-535-8395 ext. 220