Odyne seeks cash to finish hybrid development

Hauppauge, N.Y.-based Odyne (OTC: ODYC) said today it's entertaining the possibility of an acquisition, equity financing, partnership or licensing agreement to continue its work to create hybrid-electric vehicle systems.

The company's stock was down 20 percent in mid-afternoon trading.

The company attributed the need for the myriad of options to the current financial climate, which is limiting private investment.

CEO Alan Tannenbaum said in the release that the fund-raising would be "a strategic step that enables Odyne to scale production and further commercialize our systems."

Odyne said in a news release that it has hired financial adviser Matrix USA to evaluate alternatives. Company officials declined to make further statements beyond the release.

The company expects to make an announcement only if the board of directors agrees to a transaction, the release said.

Odyne said earlier this month that it's been granted three patents for battery energy and thermal management by the U.S. Patent Office.

Last October Odyne said it was working with Waukesha, Wis.'s Dueco to develop a plug-in hybrid aerial lift truck, also known as a cherry picker or bucket truck. Odyne said its battery management system can power the bucket for up to eight hours of aerial lift operation time (see Odyne, Dueco make first plug-in hybrid aerial lift truck). 

Odyne and Dueco said the truck can recharge at off hours using low cost electricity from the electric grid, and can also be recharged at any point with the conventional diesel engine. Odyne said the truck has a 255 horsepower engine, with an on-board 5-kilowatt charger.

Odyne investors include the Quercus Trust of California, a private trust based in Newport Beach, which led a $7 million round in March for private placement of unregistered shares of common stock and warrants to purchase common stock. Quercus also led a round in October 2007 for $3.2 million in private placement of senior secured convertible notes and warrants to purchase common stock.