Azure Dynamics Corporation, a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles, announced today that it has entered into an agreement with a wholly-owned Canadian subsidiary of Johnson Controls Inc. (“Johnson Controls”), pursuant to which such Canadian subsidiary has subscribed for and agreed to purchase, on a private placement basis, 21,080,000 common shares of Azure at a price of CDN$0.30 per common share for gross proceeds of CDN$6,324,000 (the “Equity Investment”).
Following completion of the Equity Investment, Johnson Controls’ Canadian subsidiary will own approximately 3.4% of the issued and outstanding common shares of Azure.
“This strategic investment, which is at a premium to the recent trading price of our shares, is a meaningful endorsement of our technology by the world’s leading supplier of automotive batteries and a company deeply experienced in integrated automotive systems solutions,” said Azure’s Chief Executive Officer, Scott T. Harrison. “It also further solidifies the already strong relationship between our two companies.”
Closing of the Equity Investment is expected to occur on or about June 15, 2010. The Equity Investment is subject to customary conditions, including the approval of the Toronto Stock Exchange.
Azure plans to use the net proceeds of the Equity Investment to fund its ongoing product development and commercialization efforts as well as for general corporate purposes.
About Azure Dynamics
Azure Dynamics Corporation (TSX: AZD) 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 various partners and customers. Azure 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. Our 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. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. We are committed to delivering shareholder value through our growth strategies and we forecast our revenues will be $33 billion for 2010. For additional information, please visit www.johnsoncontrols.com.
About Johnson Controls Power Solutions
Johnson Controls Power Solutions is the global leader in lead-acid, hybrid and electric batteries for vehicles. Our plants in 30 countries supply more than one third of the world’s lead-acid batteries to major automakers and aftermarket retailers. Through our innovations we are building the industry for hybrid, plug-in and all-electric vehicles. Our joint venture, Johnson Controls-Saft, is the first company in the world to produce lithium-ion batteries for mass-production hybrid vehicles. Our commitment to sustainability is evidenced by our world-class recycling program and our energy- efficient manufacturing.