OX2 Engine News

Carroll Shelby Enterprises, Inc., 19021 S. Figueroa St., Gardena, California 90248  (310) 538-2914

A Special Meeting of Shareholders was held by Advanced Engine Technologies, Inc. at 1:00 pm on Friday, July 23, 2010, at Carroll Shelby Enterprises, 19021 S. Figueroa St., Gardena, Calfornia, for the purpose of voting on a proposal to implement, as soon as possible, a reverse stock split of AENG common shares at a ratio of one share for each twenty shares of AENG stock.  At the time of the meeting, AET only had sufficient working capital to cover its ongoing costs for an additional 90 to 120 days.  Over 43,000,000 shares or options to purchase shares out of an authorized limit of 50,000,000 shares had already been issued, and AENG shares were trading on the market as low as $.05 a share.  The goal of a reverse stock split was to provide AET with the treasury stock needed to raise additional capital in the public and private sectors to complete development and subsequent commercialization of the OX2 engine.

Attending the meeting were Carroll Shelby, Alexandria Phillips, Jim Jeffs, John Luft, Neil Cummings, and an attorney for the Petersen Trust.  A sufficient number of proxies were returned by shareholders for the total number of votes to exceed the number required for a quorum, and the proposed reverse stock split was approved by shareholders.

AET shareholders will receive one new share of AET common stock for every twenty shares held with fractional shares being rounded up.  The reverse split will reduce the number of shares of outstanding common stock from approximately, 33,885,000 shares as of Nov. 11, 2009, to approximately 1,694,250 shares, based upon a reverse stock split ratio of 1-for-20.  Rights to exercise previously granted, but not yet exercised, stock options will also be adjusted based upon the 1-for-20 ratio.

"We believe the reverse stock split will facilitate long term growth and increase shareholder value," according to AET Chief Operating Officer, John Luft.

A July 27, 2010 telephone conversation with Mike Edwards, AET Chief Engineer, provided this brief current status report of OX2 engine development:  The vertical test OX2 engine currently has accumulated 54-56 runtime hours. The oil distribution and oil foaming problems which have caused engine overheating are now fixed, and the engine is now running in blocks of 5-6 hours at a time instead of only short runs under an hour.  Washers have been added to the rockers to successfully eliminate clicking noises produced while the engine was running.  Everyone is happy with the way the engine is now running.  The engine was just broken down for a 50-plus hour inspection, and all parts and bearings look good and are not showing wear.  AET now has possession of the circuit boards for the electronic throttle control, but work is still being done on the power electronics for the generator.  The electronic throttle control will need to be interfaced with the power electronics and the generator power output tested.  Everything will be intergrated into a new enclosure still being designed awaiting all the power electronics components.  The alternator and oil pump will be relocated below the engine instead of being belt driven at the top of the engine, keeping the top of the engine clear.  The alternator will continue to be used as opposed to tapping 12 volts from the power electronics which had been previously considered.

On another note, as of July 15, 2010, Manthey Redmond Pty Ltd has withdrawn its Australian patent application, filed July 6, 2009, for its so-called "Eco Engine" (Patent Application Number: 2009903136, Linear convergent engine).

Make a Free Website with Yola.