OAK PARK, MI, Nov. 4, 2011 /PRNewswire/ - Azure Dynamics Corporation (TSX: AZD)(OTC: AZDDF), a world leader in the development and production of hybrid electric and electric components and powertrain systems for light and medium duty commercial vehicles, announced today that it has closed the previously announced equity investment (the "Equity Investment") by a strategic investor, which is a wholly-owned Canadian subsidiary of Johnson Controls Inc. ("Johnson Controls").
Pursuant to the Equity Investment, Johnson Controls' Canadian subsidiary acquired, on a private placement basis, 30,796,969 common shares of Azure, at a price of CDN$0.165 per common share, for gross proceeds to Azure of CDN$5,081,500. As a result of the Equity Investment, Johnson Controls, through its Canadian subsidiary, now holds approximately 7.2% of the issued and outstanding common shares of Azure.
In connection with the closing of the Equity Investment, the Company has also entered into an agreement with Johnson Controls providing for certain amendments to, and an expansion of, Johnson Controls' existing supplier relationship with the Company.
Azure plans to use the net proceeds of the Equity Investment to fund its ongoing product development as well as general corporate and working capital requirements.
About Azure Dynamics
Azure Dynamics Corporation (TSX: AZD)(OTC: AZDDF) is a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles. Azure is strategically targeting the commercial delivery vehicle and shuttle bus markets and is currently working internationally with a variety of partners and customers. The Company is committed to providing customers and partners with innovative, cost-efficient, and environmentally-friendly energy management solutions. For more information please visit www.azuredynamics.com.
About Johnson Controls
Johnson Controls is a global diversified technology and industrial leader serving customers in over 150 countries. Johnson Controls' 130,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Johnson Controls commitment to sustainability dates back to its roots in 1885, with the invention of the first electric room thermostat. For additional information, please visit www.johnsoncontrols.com.
The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements. More particularly, this press release contains statements concerning an equity investment by a wholly-owned Canadian subsidiary of Johnson Controls Inc. The forward-looking statements are based on certain key expectations and assumptions made by Azure, including expectations and assumptions concerning achievement of current timetables for development programs, target market acceptance of Azure's products, current and new product performance, availability and cost of labor and expertise, and evolving markets for power for transportation vehicles. Although Azure believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Azure can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with Azure's early stage of development, lack of product revenues and history of losses, requirements for additional financing, uncertainty as to commercial viability, uncertainty as to product development and commercialization milestones being met, uncertainty as to the market for Azure's products and unproven acceptance of Azure's technology, competition for capital, product market and personnel, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability of management and key personnel, and acquisition integration risk. These risks are set out in more detail in Azure's annual information form which can be accessed at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and Azure undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Azure Dynamics Corporation