American Power Group Closes $1.3 Million Private Placement with Its Largest Shareholder

Rhea-AI Summary

American Power Group (OTC PINK:APGI) has announced the conversion of $1.285 million in advances into approximately 36 million unregistered shares of common stock. The conversion price represented a 100% premium over the closing price on the date of closing. APG's CEO/CFO Chuck Coppa highlighted the company's recent achievements, including over $2.2 million in follow-on stationary dual fuel conversion orders, the introduction of the V7000 Dual Fuel conversion solution for heavy-duty trucks, and initiation of EPA/CARB emissions testing.

APG's Chairman Matt Van Steenwyk emphasized the company's disruptive technology, which addresses emission reductions and economic savings. The V7000 system has shown promising results in initial emission testing, particularly regarding NOx reduction, which is significant for addressing CARB Near-Zero Emission Vehicle objectives.

Positive

• Conversion of $1.285 million in advances to common stock at a 100% premium over closing price
• Receipt of over $2.2 million in follow-on stationary dual fuel conversion orders
• Introduction of next-generation V7000 Dual Fuel conversion solution for heavy-duty Class 8 trucks
• Initiation of EPA/CARB emissions testing for newer SCR engine platforms
• Promising initial emission testing results for V7000 system, especially in NOx reduction

Negative

• Challenging access to growth capital for small companies in the alternative energy space

ALGONA, IA / ACCESSWIRE / September 30, 2024 / American Power Group Corporation ("APG") (OTC PINK:APGI) the leading dual fuel diesel engine conversion technology company is pleased to announce the conversion of $1.285 million of advances made over the past 15 months by an existing shareholder associated with its Chairman, Matt Van Steenwyk. The advances were converted into approximately 36 million shares of unregistered shares of common stock at a conversion price which represented a 100% premium over the closing price on the date of closing.

Chuck Coppa, APG's CEO/CFO stated, "Given current market conditions in the alternative energy space, access to growth capital for small companies has been challenging so we are extremely pleased that our largest shareholder continues to show their support and confidence with this latest purchase of common stock, especially at above market prices. Since the beginning of August we've announced the receipt of over $2.2 million of follow-on stationary dual fuel conversion orders, the introduction of our next generation V7000 Dual Fuel conversion solution for heavy-duty Class 8 trucks, the initiation of our next round of EPA/California Air Resources Board (CARB) emissions testing and efforts to finalize new testing/approval protocols to expand our 500+ industry-leading EPA engine family approvals. We are focusing on newer SCR engine platforms in the 2020 to 2022 range starting with Cummins X15 (450HP) engine platform given it allows for broader market/application coverage".

Matt Van Steenwyk, APG's Chairman noted, "As a technology investor, I am always looking for a situation where a company has an extraordinarily disruptive technology that can address multiple market drivers. In APG's case, that is significant emission reductions as well as meaningful economic savings and a low cost of entry. APG's technology is the only cost-effective solution for existing diesel engines that can optimize use of multiple low carbon fuels such as RNG, renewable diesel and biodiesel blends that provide a pathway for dramatic carbon reduction, even turning the results negative. We are very encouraged by our initial emission testing of the V7000 which has shown very promising results regarding further emission reduction percentages, especially as it relates to NOx which would be significant in our efforts to address new CARB Near-Zero Emission Vehicle (NZEV) objectives and look forward to furthering these efforts."

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

American Power Group's subsidiary, American Power Group Inc., ("APG"), provides cost-effective alternative fueling solutions for diesel to significantly reduce methane criteria pollutants and help accelerate a low-carbon future. APG's Dual Fuel conversion technology is a unique patented hardware and software solution that enables high-horsepower diesel engines to safely displace up to 60% of diesel fuel with natural gas. Engines equipped with APG's Dual Fuel technology can use renewable natural gas (RNG), compressed natural gas (CNG), liquefied natural gas (LNG), captured flare-stack methane and conditioned well-head gas resulting in lower cost, lower carbon, and lower criteria pollutant emissions. Additionally, APG's Dual Fuel conversion technology remains fully compatible with eligible biodiesel blends and renewable diesel fuels further reducing a diesel engine's carbon footprint and provide users with a proven regulatory compliant technology to meet their Environmental, Social and Corporate Governance ("ESG") objectives.

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
978-729-9183
ccoppa@apgdualfuel.com

SOURCE: American Power Group Corp.

View the original press release on accesswire.com

FAQ

What was the value of the private placement closed by American Power Group (APGI)?

American Power Group (APGI) closed a $1.3 million private placement with its largest shareholder.

How many shares were issued in the American Power Group (APGI) private placement?

Approximately 36 million unregistered shares of common stock were issued in the private placement.

What is the focus of American Power Group's (APGI) new EPA/CARB emissions testing?

APGI is focusing on newer SCR engine platforms in the 2020 to 2022 range, starting with the Cummins X15 (450HP) engine platform.

What is the potential displacement of diesel fuel with American Power Group's (APGI) Dual Fuel technology?

APGI's Dual Fuel conversion technology enables high-horsepower diesel engines to safely displace up to 60% of diesel fuel with natural gas.