For what it is worth.
May 2, 2014
REG TECHNOLOGIES INC. CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT
For Immediate Release: May 2, 2014. Vancouver, BC – Reg Technologies Inc. (TSX Venture Exchange: RRE.V, OTC BB: REGRF) ("Reg") is pleased to announce that it has closed the second and final tranche of a non-brokered private placement of up to 9,900,000 units (the "Units") to raise up to $1,188,000 as described in its December 30, 2013 news release. 7,700,000 Units were issued in the second tranche closed on May 1, 2014 at $0.12 per Unit for gross proceeds of $924,000, with each Unit comprised of one common share and one share purchase warrant. Each one warrant shall entitle the holder thereof to acquire one additional common share of Reg, from treasury, at an exercise price of $0.15 per share for a period of three years from the date the Units are issued.
All securities issued in the second tranche are subject to a hold period expiring on September 2, 2014 in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws.
The subscriber of the units is China Zhongling Hangke New Energy Group Limited ("Zhongling"). Zhongling and its affiliates (the "Zhongling Group") is an organization engaged in research and development of new energy solutions. On closing of the second tranche of the private placement, Mr. James Vendeberg resigned from the Reg board to allow the appointment of Mr. Zhang Shaojun, President and Chairman of Zhongling, to the board. Mr. Zhang has been the Chairman of Zhongling Group since February 2012. Prior thereto, Mr. Zhang was the CEO of the Natural Brand Strategy Network, based in Beijing, China, from January 2007. From January 2003 to January 2007, Mr. Zhang was the President of Jun Xin Mining Group based in Guangxi, China. Mr. Jina Liu, who was appointed to the Reg board of directors on March 27, 2014, joined the Reg audit committee on May 1, 2014 to replace Mr. James Foley who resigned on March 27, 2014.
Net proceeds from the second tranche of the private placement will be used for fabrication and testing of the RadMax™ demonstration model, current obligations, accounts payable, including intercompany payables and general working capital purposes.
"We are very pleased with the investment by Zhongling Group," said John Robertson, President and CEO of Reg. "We hope Reg and Zhongling group can build a long term relationship which is mutually beneficial in our efforts to develop technologies to advance the electronic car market."
