BUDAPEST, HUNGARY 10/20/10 -- Power of the Dream Ventures, Inc. (OTC BB: PWRV), Hungary's premier technology acquisition and development company, today announced that the Company has terminated its SEDA (Standby Equity Distribution Agreement) with YA Global advisors effective October 15.
"Over the course of the last two years it has became apparent that we will never be in a position to effectively use the SEDA and its associated $5 million equity commitment. Do to our highly depressed share price over the same time period the dilutive effect of using any portion of this SEDA would have been unacceptable. As such we have elected to terminate the agreement," commented Viktor Rozsnyay, CEO of Power of the Dream Ventures. "Unfortunately the SEDA also has an associated Warrant, which gives YA Global the right to purchase up to 4,027,386 shares of our common stock, at a per share price of $0.29 cents, for total possible proceeds of $1,000,000, if the warrant is exercised in full. We could not terminate the Warrant unilaterally in a manner similar to the SEDA. As such YA Global has elected to retain rights to the Warrant, and in fact as of October 18 has already begun to exercise some of it on a cashless basis. It is regrettable and unwarranted, that the Company will experience dilution this way," Mr. Rozsnyay added.
"On a separate note I am very happy to report that after three years of against-all-odds development work, and the commitment of almost half of our entire financial resources, iGlue is ready for its public launch. I for one look forward to this event as it will mark the first product to emerge from our efforts to locate, fund, develop and launch Hungarian technologies internationally. I hope the internet community at large will embrace the potential revolution iGlue brings to the browsing experience and knowledge management," concluded Mr. Rozsnyay.
At the Company:
Source: Power of the Dream Ventures, Inc.