(Vancouver, BC, February 2, 2010) GreenAngel Energy Corp (“GreenAngel”) (TSX-V: GAE) has entered into a Memorandum of Understanding (“MOU”) with Rapid Electric Vehicles Inc. (“REV”) to raise up to $5 million in several tranches during 2010.
Under the terms of the MOU, GreenAngel will raise capital for REV using a special purpose Venture Capital Corporation as defined under the B.C. Small Business Venture Capital Act, namely REV Technologies (VCC) Inc (the “VCC”). B.C. investors can receive a 30% refundable tax credit and also hold their shares within an RRSP or TFSA account for further tax deductions.
The initial offering for 5 million common shares at $0.25 per share to raise $1.25 million will be made by means of an Offering Memorandum to B.C. investors and to accredited investors in other jurisdictions. GreenAngel will be compensated by receiving warrants (at 10% of the number of shares subscribed) exercisable at $.25 for a three year period. Management fees, financing and operating costs associated with the VCC and the offering will be limited to a maximum of 10% of capital raised by GreenAngel. GreenAngel presently holds a 7% equity interest in REV.
Michael Volker, CEO of GreenAngel comments, “By using a VCC to offer shares under an Offering Memorandum, it will be possible for REV to attract a much broader base of investors rather than limiting itself to angel investors as it has in the past. Additionally, the use of the 30% Provincial Tax credits and the Federal RRSP deduction (up to 44%) will give investors substantial leverage and reduce their at-risk capital outlay. Furthermore, until the end of February, investors can claim these benefits when filing their 2009 tax returns.”
REV will host numerous investor presentations over the coming weeks for interested investors wishing to learn more about REV and how to take advantage of these attractive tax benefits.
REV will use the proceeds to continue the development and commercialization of its MDS technology – modular drive and energy storage systems – that transform a wide variety of automotive platforms into zero-emission, 100% electric vehicles. Its initial market thrust is the electrification of SUV and half-ton pickup trucks typically used in commercial fleet operations.
“We’re very excited about the prospects for this sort of technology,” says Jay Giraud, Founder and CEO of REV. “In just a short time we’ve received hard orders from major municipalities, utilities and Fortune 500 corporations. We’ve also had serious interest and requests to work with leading tier 1 automotive OEMs and pursue significant government contracts. By modularizing the entire drive architecture, we can make plug and play electric vehicles possible, and transform the way cars are designed and built today. We think this is the future for automotive electrification.” (www.rapidelectricvehicles.com)
About GreenAngel Energy
GreenAngel Energy Corp. is a green energy technology company. Our focus is commercializing new technologies that produce renewable energy, improve energy efficiency, or use renewable energy resources such as water, wind and solar. We also work with companies that deploy or manage technologies and processes that reduce greenhouse gas (GHG) emissions. In addition to providing strategic capital to investee companies, GreenAngel also provides business and advisory services to help ensure these companies achieve commercial success. The firms include Delaware Power Systems, Light-Based Technologies, Habitat Enterprises, Rapid Electric Vehicles, DPoint Technologies, and Paradigm Environmental Technologies. For more information, please visit www.greenangelenergy.ca.
Neither the 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 news release.
ON BEHALF OF THE BOARD
President, CEO and Director
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company’s listing of its common shares on the TSX Venture Exchange. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.
For further information, please contact
Chief Executive Officer
7300-515 West Hastings Street
Vancouver, BC V6B 5K3