MONTREAL, August 13, 2010 - AAER Inc., (“AAER”) has become an indirect, wholly-owned subsidiary of Pioneer Power Solutions, Inc. (OTCBB: PPSI) (“Pioneer”). Pioneer is continuing the wind energy products and service business of AAER under the name Pioneer Wind Energy Systems (“Pioneer Wind”).
Information for Former Shareholders of AAER Inc.
Pursuant to the Order of the Superior Court of the Province of Quebec Canada dated August 11, 2010, sanctioning the Plan of Reorganization and Compromise and to Approve a Reorganization of AAER Inc. under the Canadian Companies Creditors Arrangement Act and Section 191 of the Canada Business Corporations Act, and pursuant to the reorganization referred to in Section 5.1 of the Plan and the Articles of Reorganization filed August 12th, 2010, all previously issued and outstanding common shares of AAER Inc. were converted into nonvoting redeemable common shares having a redemption value of $0.0000001 per share on a one-to-one basis. The Articles of Reorganization also provide that if the aggregate redeemable common share redemption price payable to a shareholder is less than $10, then that shareholder’s redeemable common share redemption price is deemed to be $0.00.
About Pioneer Power Solutions, Inc.
Pioneer Wind Energy Systems is a manufacturer and marketer of large commercial wind turbines and provides related operations and maintenance services, primarily to community wind and industrial customers. The company produces advanced, three-blade turbines in a range of sizes up to 2.0 MW of output which are ideally suited to North American climate conditions. Pioneer Wind is a wholly-owned subsidiary of Pioneer Power Solutions, Inc. (OTCBB: PPSI), a U.S. public company and manufacturer of electrical equipment headquartered in Fort Lee, NJ which operates from six manufacturing, distribution and marketing locations in the U.S., Canada and Mexico. To learn more about Pioneer, please visit www.pioneerpowersolutions.com
This press release contains certain 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be preceded by the words 'intends,' 'may,' 'will,' 'plans,' 'expects,' 'anticipates,' 'projects,' 'predicts,' 'estimates,' 'aims,' 'believes,' 'hopes,' 'potential' or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) fluctuations in foreign currency exchange rates; (ii) the loss of significant customers; (iii) increases in the prices of raw materials; (iv) development of new products and service offerings; (v) the Company's ability to integrate acquisitions; (vi) the effectiveness, profitability, and marketability of the Company's current and prospective products and services; (vii) the impact of current, pending, or future legislation and regulation on the Company's industry; and (viii) the impact of competitive products, services, pricing or technological changes. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10-K filed with the SEC on April 15, 2010, the Post-Effective Amendment to Form S-1 filed with the SEC on June 1, 2010 and the Company's Form 10-Q filed with the SEC on August 16, 2010. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. The Company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.