Zhongling Hangke New Energy to acquire 20% of Reg Technologies; proceeds supporting RadMax demo rotary engine
Reg Technologies Inc., developer of axial vane rotary engine technology (earlier post), has entered into a subscription agreement with an affiliated company of HK Zhongling Hangke New Energy Investment Holding Group Limited for a C$1,188,000 (US$1,116,000) private placement under which Zhongling will purchase up to 9,900,000 units of Reg Tech priced at C$0.12 per unit, with each unit consisting of one common share of Reg Tech and one warrant, with each warrant exercisable for three years at C$0.15 for one common share. When the private placement is completed, Zhongling would own 19.98% of Reg Tech’s common shares.
Net proceeds of approximately $1,158,000 from this private placement will be used for assembly and testing costs of the RadMax Demonstration Model, accounts payable, including intercompany payables and redemption of a promissory note to a related party, and working capital purposes.
At the closing Reg Tech. agrees to obtain the resignation from two of its directors, and to appoint two new directors from Zhongling.
Reg Technologies Inc. and REGI U.S., Inc. are developing for commercialization an improved axial vane type rotary engine known as the Rand Cam/RadMax. The RadMax engine has only two unique moving parts, the vanes (up to 12) and the rotor, compared to the 40 moving parts in a simple four-cylinder piston engine.
This design makes it possible to produce up to 24 continuous power impulses per one rotation that is vibration-free and extremely quiet.
The RadMax engine also has multitude capabilities allowing it to operate on fuels including gasoline, natural gas, hydrogen, propane and diesel.
Zhongling Hangke New Energy Investment Holding Group Limited, a Hong Kong private company, is involved in the research and development of new energy solutions. The company has five core magnetic power new energy technologies and more than 200 independent research and development programs resulting in core patents, ranging from high-power magnetic motor technologies, fuel efficiency technologies and automatic battery packs.