|By Marketwired .||
|July 30, 2014 11:56 AM EDT||
POMPANO BEACH, FL -- (Marketwired) -- 07/30/14 -- Cyclone Power Technologies Inc. (PINKSHEETS: CYPW), developer of the all-fuel clean-tech Cyclone Engine, announced that its subsidiary WHE Generation Corp. ("WHE GEN") has closed its Seed Round of funding in the amount of $350,000. The financing was led by Laird Q. Cagan, co-founder and Managing Director of Cagan McAffee Capital Partners LLC in Cupertino, CA, and joined by 14 other individual and strategic accredited investors.
As a closing condition to the transaction and use of a material portion of the proceeds of the Seed Round funding, the Company paid the remaining balance of its senior secured debenture with TCA Global Credit Master Fund L.P. The payment fully retired that long-term liability and will release all of the Company's assets from a security interest and lien held by TCA.
The Seed Round funding was structured as several promissory notes issued by WHE GEN, bearing 6% interest and maturing in 12 months. The notes automatically convert to common stock of WHE GEN at a price of $.12 per share upon the closing of the first $1 million in the subsidiary's planned $2 million "A Round" common stock funding. The Seed Round and A Round financings were described in the Company's Separation Agreement with WHE GEN, approved by Cyclone's Board of Directors and signed last week. Assuming the full conversion of the Seed Round notes to WHE GEN common stock, Cyclone would continue to own approximately 43% of its subsidiary.
The financing of its subsidiary marks a material step forward in Cyclone's long-range plans of building its licensing business model on a worldwide basis, establishing new revenue streams, and growing its intellectual property portfolio.
The securities which have been offered in the Seed Round and which may be offered in the future A Round have not been registered under the Securities Act of 1933, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
About Cyclone Power Technologies
Cyclone Power Technologies is the developer of the award-winning Cyclone Engine -- an all-fuel, clean-tech engine with the power and versatility to run everything from waste energy electric generators and solar thermal systems to cars, trucks and locomotives. Invented by company founder and CTO Harry Schoell, the patented Cyclone Engine is an eco-friendly external combustion engine, ingeniously designed to achieve high thermal efficiencies through a compact heat-regenerative process, and to run on virtually any fuel -- including bio-diesels, syngas or solar -- while emitting fewer greenhouse gases and irritating pollutants into the air. The Cyclone Engine was recognized by Popular Science Magazine as the Invention of the Year for 2008, and was presented with two Society of Automotive Engineers' AEI Tech Awards. Additionally, Cyclone was named Environmental Business of the Year by the Broward County Environmental Protection Department. For more information, visit www.cyclonepower.com.
Follow Cyclone on Facebook: http://www.facebook.com/CyclonePowerTechnologies
Safe Harbor Statement
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.