Empower Technologies Announces Debt Financing July 30, 2010 – Richmond, British Columbia, Canada – Empower Technologies Corporation (TSX.V: EPT) (Empower) announces that it has obtained debt financing of $925,000, effective today, through its directors and officers (“Lenders”). The terms of the debt are subject to the acceptance of the TSX Venture Exchange (the “TSX-V”). The net proceeds of the debt financing will be used for general corporate working capital. The debt is repayable in 12 months, carries an annual interest rate of 14% and, subject to TSX-V approval, will be convertible into common shares of the Company at the market price of the common shares (as determined in the policies of the TSX-V), and will be secured by a general security agreement over all of the Company's assets. The Company has also agreed to pay for the costs of borrowing and pledging of the collateral of the Lenders which include legal, security pledge, disbursements and a 4% work fee. If TSX-V acceptance (and, if required, shareholder approval) of the grant of security or the conversion feature of the debt financing is not obtained, then the debt shall be repayable on demand by the Lenders. The independent members of the board of directors have reviewed the debt financing and concluded that the debt financing, including the loan, grant of security and the conversion feature, is necessary and designed to improve the Company's financial position, is in the best interests of the Company and is fair to shareholders, and have therefore approved the debt financing, subject to TSX-V acceptance. Neither 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 release.
About Empower Technologies™ Founded in 2000, Empower Technologies (TSX.V: EPT) is an innovative company that brings the power and flexibility of the LEOs® (Linux Embedded Operating System) to the dynamic embedded computing Industry and the emerging Intelligent Appliance Market, through their development of Linux-based operating software, embedded system technologies and solutions. The products and services that form the base of its business activities include an embedded system development platform for LEOs®, based on Texas Instruments™ embedded CPU platform, that fulfill the needs and demands of developers and the embedded computing Industry. Empower is continuing to develop LEOs® and newer versions of embedded CPUs in line with Texas Instruments™. By uniting top professionals from within the computer industry and developing quality partnerships and strategic alliances, Empower is committed to being the leading developer of Linux-based operating software and embedded system technologies and solutions for electronics manufacturers and developers. Empower's brands are “LEOs®”, “LinuxDA™”, Linux-based embedded operating systems, “BullsEye” Video Imaging Technology, “PowerPlay™”, smart consumer electronics.
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