American Power Group Announces Conversion Of $1.97 Million Of Short-Term Obligations Into Common Stock At $0.25 Per Share

Rhea-AI Summary

American Power Group Corporation (APGI) announced the conversion of $1.97 million of convertible notes and accrued interest into approximately 7.86 million shares of common stock, following a May 2018 agreement. In the past 18 months, the company has reduced corporate debt by about $6.8 million, including $1.8 million of bank debt and around $5 million of convertible debt. CEO Chuck Coppa emphasized the focus on strengthening the balance sheet. The company’s dual fuel solutions aim to support a low-carbon future, although financial pressures and reliance on third parties pose risks to ongoing operations.

Positive

• Converted $1.97 million of convertible notes into 7.86 million shares, reducing debt.
• Overall corporate debt reduced by approximately $6.8 million over the last 18 months.

Negative

• Past fiscal years reported financial losses in the dual fuel conversion business.
• Potential need for additional financing to support growth.
• Dependence on third parties for manufacturing and distribution may affect operations.

ALGONA, IA / ACCESSWIRE / July 6, 2022 / American Power Group Corporation ("APG") (OTC Pink:APGI) announces the conversion of $1.97 million of convertible notes and associated accrued interest into 7,861,172 shares of unregistered common stock pursuant to the term of a May 2018 agreement with certain note holders, including APG's Chairman and CEO/CFO.

Chuck Coppa, APG's CEO/CFO stated, "We continue our efforts to strengthen our balance sheet and have reduced our overall corporate debt over the past 18 months by approximately $6.8 million, including $1.8 million of long-term bank debt and the conversion of approximately $5 million of convertible debt and accrued interest, in the aggregate, which was converted at $0.25 per share, a portion of which is noted above."

About American Power Group Corporation (www.americanpowergroupinc.com)

American Power Group's subsidiary, American Power Group Inc. provides cost effective dual fuel engine solutions to help accelerate an alternative fuel low-carbon future. Our patented Turbocharged Natural Gas® Dual Fuel Conversion Technology is a unique hardware and software solution that can enable existing high-horsepower vehicular and stationary diesel engines to safely displace a significant percentage of diesel with various forms of clean burning natural gas including low-carbon and negative-carbon renewable natural gas (RNG), captured flare-stack methane gas, conditioned well-head gas, bio-methane gas, compressed natural gas (CNG) and liquid natural gas (LNG). APG's dual fuel solution provides users with a proven technology to meet their Environmental, Social and Corporate Governance ("ESG") objectives by lowering criteria pollutants and greenhouse gas emissions.

Caution Regarding Forward-Looking Statements and Opinions

The matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to outstanding dual fuel conversion quotes for $4 million + and our ability to turn these quotes into actual orders. These forward-looking statements and opinions are neither promises nor guarantees, but involve risks and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially from such forward-looking statements and opinions. These risk factors include, but are not limited to, the fact that we may not be able to convert the $4 million+ of quotes into actual orders, the fact our dual fuel conversion business has lost money in prior fiscal years and the risk that we may require additional financing to grow our business, the fact that we rely on third parties to manufacture, distribute and install our products, we may encounter difficulties or delays in developing or introducing new products and keeping them on the market, we may encounter lack of product demand and market acceptance for current and future products, we may encounter adverse events or economic conditions, we operate in a competitive market and may experience pricing and other competitive pressures, we are dependent on governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the risk that we may not be able to protect our intellectual property rights, factors affecting the Company's future income and resulting ability to utilize its NOLs, the fact that our stock is thinly traded and our stock price may be volatile, and the fact that the exercise of stock options and warrants will cause dilution to our shareholders. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. Except as required by law, the Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements and opinions that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Investor Relations Contact:

Chuck Coppa, CEO/CFO
American Power Group Corporation
781-224-2411
ccoppa@apgdualfuel.com

SOURCE: American Power Group Corporation

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FAQ

What is the latest development for APGI regarding convertible notes?

American Power Group Corporation converted $1.97 million of convertible notes into approximately 7.86 million shares of common stock.

How much corporate debt has APGI reduced recently?

APGI has reduced its corporate debt by approximately $6.8 million over the past 18 months.

What challenges does APGI face in its dual fuel conversion business?

APGI's dual fuel conversion business has incurred financial losses in previous fiscal years and may need additional financing for growth.

What risks are associated with APGI's manufacturing and distribution?

APGI relies on third-party manufacturers and distributors, which may lead to operational delays or difficulties.