China Nuvo Solar Announces Plans to Acquire Lithium Ion Battery Manufacturer Freya Energy Inc.
March 09 2011 - 7:00AM
Business Wire
China Nuvo Solar Energy, Inc. (OTCBB: CNUV) today
announced plans to acquire lithium ion battery company Freya Energy
Inc. (“Freya”). The parties have executed a non-binding Letter of
Intent (“LOI”) and are moving toward the signing of a definitive
agreement over the next sixty days. Pursuant to the terms of the
LOI, China Nuvo Solar would acquire one hundred percent of the
outstanding common stock of Freya. Further details of the agreement
will be released in the near future. The Company will continue to
trade under the stock ticker “CNUV” with Freya becoming a wholly
owned subsidiary of the alternative energy parent.
Industry experts forecast the lithium battery market to triple
from current levels of $11-13 billion to over $40 billion by
2015-2020. Historically, the lithium ion battery market has been
principally 90% consumer related, however newer diversified
applications including non-automotive vehicle propulsion, defense
applications, and electrical storage systems ("ESS") are expected
to be the new growth drivers.
"This potential acquisition of Freya Energy is the first in the
series of planned steps in executing our business model and
becoming a meaningful player within the renewable energy space. We
believe Freya is an exciting opportunity for the Company and is
part of our roll-up strategy to increase shareholder value. Freya
is on the cusp of commercialization in a fast growing segment of
the renewable energy sector that we believe offers unique
advantages over similar technologies," stated Henry Fong, CEO of
China Nuvo Solar Energy.
"This transaction is a logical next step in our
commercialization efforts that we believe offers Freya the
accessibility to the capital markets thereby allowing us to
accelerate our path to market entry," commented Richard Fox, CEO of
Freya.
Closing of the transaction is subject to customary conditions
including, among other things, the negotiation and execution of
definitive agreements as well as the approval of both companies'
boards of directors and any necessary stockholder or regulatory
approval.
About Freya Energy
Freya is a producer of safe large format lithium ion cells and
batteries for demanding applications. Freya believes its
proprietary separator provides greater safety than competitive
products and provides a higher energy density than others on the
market.
Freya's technology is protected by patent filings, ready for
manufacture and requires no additional research and development.
Freya has developed a commercialization plan for rapid market
entry. Its personal relationships with known and established
customers, positions the company for timely sales in the United
States and Europe. Subject to initial funding and satisfactory
prototypes, Freya has several million dollars in letters of intent
that can be converted to purchase orders.
Freya has an experienced management and technical team led by
well-respected innovators in battery technology.
About China Nuvo Solar Energy
China Nuvo Solar Energy, Inc. is a development stage company
that owns unique patent pending solar and photovoltaic related
technology. The Company's business model includes a roll-up
strategy of clean energy companies and intellectual property within
the renewable energy sector.
This press release may include forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are based on the Company's current expectations as
to future events. However, the forward-looking events and
circumstances discussed in this press release might not occur, and
actual results could differ materially from those anticipated or
implied in the forward-looking statements.