Omnitek Engineering Corporation has entered into a definitive agreement with investors for a private placement of common stock and warrants to raise approximately $5 million in gross proceeds.
“The completion of this financing will greatly accelerate the build out of our national network of diesel-to-natural-gas conversion facilities. There is enormous pent up demand for truck engine conversions in the U.S. market, as well as other substantial opportunities -- including power generators, irrigation pumps, and other diesel powered equipment,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.
Funk noted that diesel engines have a service life of up to 20 years. “During the life span of diesel engines, routine overhauls are required and service budgets established in advance. By converting these diesel engines to operate on natural gas during a routine service overhaul, we are able to offer truck operators a compelling return on investment with much lower fuel costs and cleaner combustion. Omnitek’s option is clearly an attractive consideration given the cost to purchase a new natural gas truck engine and the large “carbon-footprint” as a consequence of manufacturing a new engine,” Funk said.
He added that compressed natural gas provides significant advantages over diesel fuel – including reduced emissions, plentiful supplies and favorable economics. Industry sources estimate there are up to 8.0 million heavy duty vehicles operating in the United States that could benefit from conversion to natural gas.