Turbine Truck Engines Secures $5 Million in Funding

7 June 2008

Turbine Truck Engines, Inc.  (TTE), the developer of the concept Detonation Cycle Gas Turbine (DCGT) for heavy-duty vehicle applications (earlier post), has finalized $5 million in funding through Golden Gate Investors Inc. (GGII), a financial fund based in La Jolla, California.

TTE has entered into a Securities Purchase Agreement with GGII, which provides for the issuance and sale of up to $5 million of convertible debentures, with the initial issuance of a $1 million debenture. Further details of the initial debenture include a payment of cash by GGII to TTE of $100,000 upon closing and the delivery by GGII to TTE of a $900,000 Secured Promissory Note. The Purchase Agreement provides GGII with the right to lend, over four additional and separate debenture transactions, an additional $4 million of funding to TTE.

The multi-fuel Dentonation Cycle Gas Turbine (DCGT), originally developed by Alpha Engines beginning in 1984, promises to consume 30% less fuel; to emit fewer criteria pollutants (NO_x, CO, HC); and to emit fewer greenhouse exhaust gasses than current piston engine technology. The turbine operates on all hydrocarbon, hydrogen, and synthetic fuels. The DCGT has Flex-Fuel and mixed-fuel capabilities, as well as cold start capabilities with any fuel.

In February, TTE announced its merger with Highpoint Transport Inc. (HPTI), which will result in the creation of a new company (Turbine Truck Engines NV, Inc.) as a wholly-owned subsidiary of HPTI (earlier post). HPTI is acquiring and integrating complementary transportation companies and transport related technologies. In October 2007, Highpoint acquired Canon Freight Systems, Inc. and has also signed several Letters of Intent to acquire other transportation-related companies.