CORPORATE OVERVIEW
Through its parent company Reg Technologies Inc., REGI U.S. Inc. is developing for commercialization an improved rotary engine that is quiet and able to operate on fuels like gasoline, natural gas, propane, and diesel. Trademarked under the name RadMax, this innovative rotary technology is used in the design of lightweight and high-efficiency engines, compressors, and pumps for multiple applications including aviation, automotive, industrial, and military. Reg Technologies owns the worldwide rights to RadMax rotary technology, and REGI U.S. Inc. owns the U.S. rights.
HISTORY
Reg Technologies has been involved in the research and development of RadMax technology for several years with the goal of licensing and participating in joint ventures to manufacture specific RadMax applications.
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In April 2007, REGI U.S. Inc. formed its wholly owned U.S. subsidiary, Washington State-based RadMax Technologies Inc., with the initial goal of winning U.S. military contracts for custom versions of RadMax products. The company also seeks research and development funding through license agreements in order to tailor RadMax products to meet specific requirements for the U.S. military. RadMax products include RadMax internal and external combustion diesel engines, RadMax pumps, and RadMax compressors.
Former REGI U.S. licensee, Radian MILPARTS, has built a 42 H.P. diesel engine for unmanned aerial applications. The company also plans to develop a RadMax generator for hybrid car applications. Reg Technologies Inc. and REGI U.S. Inc. completed a RadMax pump, which will be used for demonstration purposes. The company has also created a compressor for air conditioning units for buses.
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TECHNOLOGY
A result of $11 million of research and development, the RadMax engine is an internal combustion engine built around a rotary model. Designed with simplicity, power, and efficiency in mind, it has two to three times the power and weighs just half that of the traditional Wankel rotary engine. Unlike the Wankel, the intake-compression-ignition-exhaust sequence is completed in just one revolution, resulting in 24 power impulses.
The RadMax engine has two unique moving parts, the vanes (up to 12) and the rotor, compared to the 40 moving parts in a simple four-cylinder piston engine. This innovation allows it to produce up to 24 continuous power impulses per rotation that are vibration-free and quiet.
A disc-shaped rotor and driveshaft turn the housing, or stator, which remains stationary. Up to 12 vanes mounted parallel to the shaft slide up and down along the outside of the rotor as they follow a track along the inside of the stator housing. Combustion chambers form between the rotor, stator walls, and vanes, and their volumes change as the vanes move during rotation.
The engine has a compression ratio of 20:1 for a diesel cycle, and will burn a variety of fuels. It also uses 13 moving parts, including 12 vanes, rather than the 40 used for conventional piston engines. The rotor and vanes replace timing gears, connecting rods, pistons, cylinders, and valves and improve reliability while cutting manufacturing costs.
Because all the components are spinning in the same direction, the engine is able to operate with low vibrations since there are no pistons or valves making thousands of abrupt changes per minute. The combustion chambers are also balanced around the rotor, plus the rotor acts as a flywheel to smooth out power imbalances and eliminate destructive harmonics.
MARKET OPPORTUNITY
The RadMax engine has a variety of possible applications ranging from the smallest weed trimmer to the largest commercial or military jet engine. It can also be used in everything from air conditioners and air and steam expanders to hybrid vehicles and personal power generation.
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In every application, the engine offers versatility and efficiency through its multi-fuel capability, fewer moving parts, low weight, reduced vibration, and ease of maintenance. These advantages position the RadMax engine within several lucrative markets.
Portable power, micro power, pumps, and compressor markets total $25 billion to $30 billion. The diesel engine market is worth more than $20 billion in the U.S. and $60 billion worldwide. Global hybrid vehicle sales will reach $14 billion this year and grow by 15% annually. The worldwide motorcycle market is now at $15 billion and is expected to grow by 25% annually.
Sales of unmanned aerial vehicles, a growing and dynamic sector of the aerospace industry, are expected grow to $8.9 billion by 2014. The company plans to focus much of its attention on this market since the lighter RadMax will allow these aircrafts to stay in the air longer and carry more fuel.
Driving the growth of many of these markets will be an increased political focus on the environment and clean technology. Before leaving office, former president George Bush signed a bill that will provide $25 billion in low-cost government loans for the auto industry, enabling it to build advanced technology vehicles with greater fuel efficiency. President Obama has made widely known his plans to aggressively fund the alternative energy and auto industries. GM spokesman Greg Martin has said that the American auto company is “urgent[ly] developing new technologies.”
When successful, the RadMax engine will use less fuel with less emissions and provide a lighter alternative for recharging battery cells on hybrid cars. New York’s Bridge IR Group released a research report covering the weight, power, and fuel-efficiency of RadMax prototypes, saying that it could “achieve commercial success.”
FINANCIALS
After using $11 million to develop its prototype, the company will continue to raise funds through equity financing. The company will use this to continue focusing on prototype development for specific applications, leaving marketing, manufacture, and distribution to its licensing partners.
As a development-stage company, it has no revenue and operates at an annual loss of around $1.5 million. The company’s market cap is around $8.39 million and its 52-week high is $1.18, with shares currently trading around 30 cents.
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RECENT NEWS
January 28, 2009 - The company
issued a pivotal status report: the RadMax diesel engine design has been completed by its engineers and is awaiting final approval by a Fortune 1000 company; the computer COSMOS analysis started 5 weeks ago; following the successful completion of the COSMOS analysis and review/approval by the Fortune 1000 company’s engineers and executives, REGI and Reg will commence building the prototype diesel engine; the estimated time for completion of the prototype is 60 to 90 days; and testing the prototype is a joint effort with the Fortune 1000 company to be followed by a formal test report, scheduled for release to the public.
January 15, 2009 - REGI U.S. Inc. recently named Dr. Allen MacKnight as its lead thermodynamics engineer on the continued development of the RadMax engine. MacKnight has extensive experience as a mechanical, thermodynamics, controls, and systems engineer in the design and manufacturing of environmental control equipment and gas turbine engines.
December 9, 2008 - The company's engineering chief Paul Porter and vice president of engineering Robert Grisar commenced the detailed design modeling analysis that will enable them to begin testing of the RadMax diesel engine.
July 31, 2008 - The company received regulatory approval and closed a non-brokered private placement of 1,315,168 common share units as described in its June 2, 2008 news release. Units were priced at $0.40 for gross proceeds to the company of $526,067.
June 23, 2008 - The company announced that based on a recent independent engineering assessment, the RadMax diesel engine will use 20% less fuel than a gasoline engine and 50% less fuel than a turboprop jet engine.
Visit www.regtech.com/News_Releases for more news and information.
MANAGEMENT
John Robertson, President of REGI U.S. and Reg Technologies
Prior to joining REGI in 1992, Robertson had many years of experience as founder, president, CEO, and director of numerous development stage public companies in a variety of industries, including mining, oil and gas, and technology.
James Vandeberg, CFO, President, and Director of RadMax Technologies Inc.
Specializing in corporate finance with an emphasis on securities and acquisitions, Vandeberg is an attorney in Seattle, Wash. He was previously counsel and secretary to two NYSE companies. Mr. Vandeberg is a member and former director of the American Society of Corporate Secretaries.
Robert Grisar, Vice President of Engineering
Grisar has more than 30 years of progressive engineering experience designing and implementing electronic and mechanical systems for the U.S. Department of Defense and related agencies. This includes airborne radar for fixed and rotary wing aircraft, shipboard, submarine, and torpedo sonar, and line-of-sight, meteor burst, and satellite communications systems. His commercial experience includes designing and implementing the user interface and software for medical imaging and diagnostic systems.
This corporate profile is based upon information provided by the management of REGI U.S. Inc. The information is not intended to be and shall not constitute an offer to sell or solicitation of any offer to buy any security. It is intended for information only and to increase awareness of REGI U.S. Inc. Safe Harbour Statement: This material contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act (U.S) of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions. All statements addressing operating performance, events, or developments that the Company expects or anticipates will occur in the future are forward-looking statements subject to risk and uncertainties. Should one or more of these risks or uncertainties materialize, or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. The Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this material. EQUITIES Magazine was paid a fee by REGI U.S. Inc. to write and print this profile. Before investing in any security, you are strongly advised to review all public filings of the company at www.sedar.com as well as the warnings published by the Securities and Exchange Commission at www.Sec.gov/investors.htm
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