Quebec Brake Supplier Announces Financing

Brake technology supplier NewTech Brake Corp., based on Blainville, Que., has announced that it has entered into an agreement with Cornell Capital Partners, LP for a US$25 million equity financing commitment and that the final agreement between the parties was completed on October 04, 2002.
Under the terms of the funding agreements with Cornell Capital, a New Jersey based domestic investment fund, NewTech Brake Corp. has the right, but not the obligation, to require Cornell Capital to purchase shares of NewTech Brake Corp’s common stock in amounts up to US$ 1.1 million per month to a maximum of US$ 25 million over the next 24 months.
The equity draw-downs are entirely at the discretion of NewTech Brake Corp. and there are no minimum draw-downs required in the agreement.
The draw- downs are subject to an effective registration statement with the United States Securities and Exchange Commission covering the resale of the shares, which will be filed in the next few days.
NewTech Brake Corp’s chairman Yvon Rancourt stated, “I am very pleased that the company has developed a relationship with a financial partner who recognizes the viability of our unique project. This financing commitment is expected to provide NewTech Brake Corp. with capital to accelerate the execution of our business plan and the commercialization of our NewTech full contact disk brake in the North American and European heavy vehicle market with improved efficiency and results. It will also permit us to potentially seek out other new geographical markets for the product.
“Further, the agreement provides us with the flexibility to control the timing and amount; it also allows us to effectively manage the potential dilutive effects that are characteristic of many forms of equity financing.”
Matt Beckman, managing partner of Cornell Capital Partners, LP, stated, ” we are excited about the opportunity to play a key role in supporting NewTech Brake Corp. in the commercialization of its full contact disk brake for the North American and European heavy vehicle market”.
“The patented NewTech full contact disc brake is a bold departure from conventional braking technology. After close to ten consecutive years of virtual and computer design, over $30 million of research and development work and extensive testing, we can see that the current design of the foundation full-contact brake is now ready for industrialization and commercialization.” George Kanakis, vice-president of Cornell Capital Partners, LP, added, “in addition to the equity financing we look forward to providing traditional investment banking services and supporting Yvon Rancourt and his team in introducing their product to the worldwide market.”