ROCHESTER, N.Y. – Richard Kaplan, CEO of Torvec Inc., announced today that the company has raised $5 million in a private placement transaction involving a new series of preferred stock. In connection with this investment in the company, a total of 25 million shares of Series C-2 Voting Convertible Preferred Stock were issued to a small group of investors.
As part of the transaction, the company has confirmed that it intends to raise up to an additional $1 million within the next several months with various accredited investors, including certain company directors, through the issuance of shares of a new series of preferred stock to be designated as Series C-3 Voting Convertible Preferred Stock at a price that is yet to be determined.
The company plans to use the proceeds raised to continue the development and marketing of its technology for commercialization, including the IsoTorque differential and the Torvec hydraulic pump.
Kaplan stated, "We are extremely pleased with the completion of this equity raise, as it provides us with the financial support we need to continue our development work toward commercializing our promising technologies. We are optimistic that we will be able to provide this investor group, and all of our shareholders, with an outstanding return on their investment."
