BLACKWOOD, N.J. , May 21 /PRNewswire-FirstCall/ -- Airtrax, Inc. (OTC Bulletin Board: AITX), a developer of patented, Omni-Directional technology with military and commercial applications, announced today that the Company has raised approximately $100,000 in new investment capital from a group of accredited and qualified institutional investors. Specific details about the transaction can be found in a form 8-K filed by the Company and available at http://www.sec.gov.
Airtrax issued investors secured debentures, convertible into shares of common stock at a conversion price equal to $0.05 , for an aggregate purchase price of $99,995.28 . The debentures mature on November 16, 2008 and accrue interest at an annual rate of 8%, with interest payable monthly starting June 30, 2008 . The debentures are also callable and may be pre-paid at Airtrax's discretion prior to maturity.
In a recent filing, Airtrax recently disclosed that it had ceased to
operate due to a lack of financing. Since then, several significant
personnel, management and Board changes have occurred at the company. William
Hungerville became the acting Chief Executive Officer of the Company as of
April 10, 2008 , replacing the former CEO Mr.
In addition, Airtrax anticipates that the Company will have a new focus on technology licensing and that it will also be eliminating manufacturing and related business functions from its operations, once it has secured adequate funding to re-start operations. To this end and in an effort to maintain the company's independence, Airtrax has already reduced its burn rate and has begun the process of acting on its newly defined business plan.
Proceeds from this financing only represent a portion of the funds needed to meet the Company's long term capital requirements and there is no guarantee that the Company will be able to secure all the funding that it needs to become viable. As such, the Company is continuing to seek additional investment capital to strategically reposition itself as an emerging growth player in the multi billion dollar materials handling industry. In the near term, a detailed update on the company's progress will be issued to the financial community and periodic updates will be made available thereinafter.
About Airtrax, Inc.
A U.S.-based developer of Omni-Directional Technology, Airtrax designs and manufactures Omni-Directional Vehicles. The Airtrax patented wheel was designed and developed by Airtrax after receiving a technology transfer from the US Navy in the form of a Cooperative Research and Development Agreement (CRADA).
The SIDEWINDER(TM) Lift Truck, MP2 Equipment Handlers, and the COBRA(TM) Omni-Directional Aerial Work Platforms (AWPs) are the first Omni-Directional vehicles using Omni-Directional Technology and the patented Airtrax wheel to be commercially produced. The nearly maintenance-free drive system design reduces maintenance costs, delivering cost efficiencies to companies both large and small. The Airtrax patented Omni-Directional wheel is manufactured exclusively for Airtrax vehicles.
Airtrax has developed business partnerships, received orders, and shipped SIDEWINDER Lift Trucks to California , Wisconsin , Nevada , Texas , Arkansas , Ohio , New Jersey , New York , Kentucky , Florida , and Pennsylvania in the United States , and internationally to the United Kingdom , Japan , Spain , Ireland , Israel , New Zealand , Canada , and South Africa .
For more information and to view a must-see product demonstration, visit http://www.airtrax.com or http://www.equityperformancegroup.com/clients_airtrax.php.
The Private Securities Litigation Reform Act of 1995 provides a 'Safe harbor' for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involved risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission. Customers of the SIDEWINDER mentioned in this release may own shares of Airtrax's stock or may own shares in the future.
For further information, contact:
Investor Relations:
The Equity Performance Group
Gary Geraci
617-242-1025
gary@equityperfgp.com
http://www.equityperformancegroup.com
SOURCE Airtrax, Inc.
