US Energy Initiatives redeems $4.72 million in convertible debentures

By Sheri Kasprzak

New York, March 31 - US Energy Initiatives, formerly Hybrid Fuel Systems, Inc., has redeemed $4.72 million in convertible debentures it issued in April 2005.

The 6% debentures had been due Feb. 9, 2008 and were convertible into common shares at $2.43 each.

"We are very pleased to redeem this financing through the payment of cash rather than converting this debt into additional shares of our common stock," said US Energy chief executive officer Mark Clancy in a statement. "We enjoyed a strong relationship with our financing partners during a critical phase in our development.

"The opportunity to take out this convertible debt is good for our financing partners who are repaid in full and for our shareholders as we can avoid the dilution that would have occurred."

Tampa, Fla.-based US Energy delivers dual-fuel diesel to natural gas conversion technology and resells a portfolio of gasoline-to-natural gas and propane conversion systems.

The company's stock closed unchanged at $0.37 Friday (OTCBB: HYFS).

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