Copyright 1996 Canada News Wire Ltd.
Canada News Wire
July 15, 1996 Monday
SECTION: Financial News
LENGTH: 834 words
HEADLINE: Attention Business Editors: COOPERATIVE AGREEMENT FOR NASA GENERAL AVIATION PROPULSION PROGRAM
DATELINE: RICHMOND, British Columbia, July 15
BODY:
The following statement was issued today by John Robertson, President of REG Technologies, Inc.(OTC Bulletin Board: REG RF; Vancouver:RRE.V), on behalf of the Board of Directors of REG TECHNOLOGIES, Inc.: REG TECHNOLOGIES, Inc. and its U.S. subsidiary REGI U.S., Inc. (OTC Bulletin Board: RGUS)wish to annouce that we have agreed to a cooperative agreement to participate with Global Aircraft Corporation in the NASA GAP program. Global is currently preparing the NASA GAP proposal with the various NASA government agencies and others. The proposal includes detailed budgets, a technical program plan,and a commercialized plan for the RAND CAM(TM) aviation engine. Also a business plan for manufacturing to arrange financing of the project and to prepare the final proposal to be submitted July 23, 1996. The GAP program concept would be based on a $8.5 million (US) program which would consist of $5 million for Rand Cam engine development. Global support would be targeted at $3.5 million for design, construction and testing of the airplane which will serve as the demonstration platform for our Rand Cam engine. In return for Global's participation in the GAP program, management of the GAP contract, contribution of significant aviation technology, experience, NASA relationships and the $3.5 million contribution for design, construction and testing of their airplane for the Rand Cam engine. Global will receive a world wide unlimited license for aviation applications of the Rand Cam engine. Reg/REGI will receive a 5% royalty on all products under the license and 50% of royalties on sublicense agreements. Reg/REGI will also share equally in all sublicenses fees after Global has recovered all development and certification costs. Reg/REGI has also granted Global an option to purchase a world wide license for all marine engines over 100 HP on the following terms and conditions.
--Global will pay $5 million to Reg/REGI to purchase the said
world wide marine license. The $5 million is to be paid six months after the successful testing of a 1000 SHP Rand Cam engine for 2,500
hours od continuous operation endurance test.
--Global will arrange a $2.5 million temporary credit facility for Reg/REGI to cover the matching funds required for the NASA GAP
contract.
--Global will pay Reg/REGI for the fabrication and testing of
the said marine engine. Reg/REGI shall provide all design and
technical support for engine development.
--Reg/REGI shall receive a 5% royalty on all marine engines
produced under the license and 50% of all royalties from sublicenses.
Reg/REGI and Global shall equally in all sublicense fees after Global receives its development and certification costs.
--Reg/REGI has agreed to issue Global a warrant for 100,000 shares
of REGI, U.S., Inc. to be issue upon award of the NASA GAP program.
In the event Global/REGI is not awarded the GAP contract,Global will
receive 50,000 shares of REGI for its contribution in preparing the
said proposal.
--Reg/REGI believes that our participation with Global in the
proposed program will benefit Reg/REGI in several ways as set forth:
--Bring Reg/REGI prestigious participation in a NASA High
Technology Program designed to define light aircraft engine
technology for the next decade and beyond.
--Accelerate development of a new generation of aviation
engines which will generate profits for Reg/REGI and its stockholders.
--Provide NASA technical support in the development of Rand
Cam engines which will be provided at no cost to Reg?REGI.
--Provide access to government technical expertise and test facilities that are not available to Reg/REGI at any cost except as a participant in the GAP program.
--Bring development of Rand Cam engine technology to a higher
level in a shorter time frame which will provide critical design and manufacturing information for other applications.
--NASA will provide one dollar of support for every dollar Reg/REGI spends plus provide additional NASA technical support at no
cost to Reg/REGI.
--Global will provide technology in expertise to design, build
and flight test an airplane, propellor and aero-cowl designed
specifically for the NASA GAP mission and for the Rand Cam engine.
This will maximize airplane performance which will reflect
well on this engine.
--Participation in the NASA GAP program will give Reg/REGI and
the Rand Cam engine high visibility international exposure which will
assist in selling the concept to other industries and applications.
On Behalf of the Board of Directors
John Robertson
President
NOTE: The Vancouver Stock Exchange has neither approved nor
disapproved of the information contained herein.
-30- For further information: John Robertson, President of Reg Technologies, Inc. (604) 278 5996
TROLLIE BOY, I'm saving the good stuff.........