Empower Technologies Conversion of Loan to a Convertible Loan November 1, 2011 – Richmond, British Columbia, Canada – Empower Technologies Corporation (TSX.V: EPT) (“Empower”) announces the Company has promissory notes of approximately $2.8 million outstanding as of October 24, 2011 from a Non-Arm’s Length Party who is a director and officer of the Company (“Lender”). Currently the promissory notes have to renew individually annually as each come due over the year. The management of the Company believes if the promissory notes were changed to one long term debt with a convertible feature then it will improve the Company balance sheet, provide long term stability over the debt, increase confidence in the Company’s long term prospect and help future financing. Therefore, the management of the Company proposed to issue a five (5) years convertible promissory note bearing 10% compound interest per annum by the Company with option at the discretion of the Lender to renew any remaining balance of the debt at the end of the five (5) years term for another three (3) years or five (5) years under the same terms and conditions, the promissory note and its accrued interest can be converted at any time in whole or in part as many times as necessary during the term to Empower common shares at $0.10 per Share at the discretion of the Lender, the grant by the Company to the Lender of a security interest in all of the Company’s present and after acquired personal property in the form of a General Security Agreement, and the creation of a new “Control Person” of the Company which will be the Lender in the event the promissory note is fully converted or the cumulative debt portion converted into Shares represents ownership of 20% or higher of the total outstanding shares. The price reservation and the conversion of the long term loan to a convertible loan are subject to TSX Venture Exchange approval.
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.
|