Automotive innovator forms distribution partnership with
Chinese environmental company
SANTA ANA, Calif., Oct. 14, 2014 /PRNewswire/ -- SaviCorp®
(PINKSHEETS: SVMI) announces that it has entered into a five-year
Exclusive Master Distribution Agreement with Beijing FlyingGlob
Environmental Technology Limited Company, a company established in
the People's Republic of China.
According to the terms of the Agreement, FlyingGlob will promote,
distribute and sell SaviCorp's signature line of DynoValve®
automotive products within its exclusive territory, which is
the People's Republic of China and
its Special Administrative Regions of Hong Kong and Macau.
The distribution agreement follows extensive negotiations
between the two companies and was preceded by a letter of intent
executed in May 2014. SaviCorp
traveled to China in July 2014 to meet with FlyingGlob's CEO,
demonstrate the DynoValve® technology, and finalize the terms of
the exclusive marketing and distribution agreement. Based on the
better-than-expected test results reported by the Chinese
Government's environmental testing agency, FlyingGlob entered into
the distribution agreement, which establishes a minimum annual
purchase volume of 500,000 DynoValve® units during the first
year. In support of this requirement, FlyingGlob is to
purchase an initial order of 50,000 units at a price of
$8.25 million.
During the final four years of the contract, FlyingGlob has
agreed to a minimum purchase of 5.5 million units, for a total
minimum order of 6 million units during the five-year term of the
agreement. The successful distribution and sale of the 6 million
units is estimated to produce revenues of approximately
$679.5 million. In addition,
the agreement provides for a $30
million licensing fee to be paid by FlyingGlob that may be
paid over the term of the agreement.
"The potential for SaviCorp's technology to play a key role in
the pollution reduction effort underway in China represents a tremendous opportunity for
the company and we are thrilled to have FlyingGlob as our partner
in this endeavor. This is a giant step forward for SaviCorp
because it also opens the door to significant possibilities in the
future distribution of all our DynoValve® products," said Serge
Monros, Chairman and CEO of SaviCorp. "Our ability to leverage the
substantial environmental benefits of our products and align them
with FlyingGlob's business model is the perfect marriage of
technology and marketing."
With the development of a reliable distribution channel in
the People's Republic of China,
SaviCorp continues to aggressively expand its international sales
scope. The Company's full line of automotive pollution control
components will be implemented to full effect, providing a
substantial reduction of environmentally detrimental emissions.
Beijing FlyingGlob Environmental Technology Limited
Company is an energy enterprise operating in the field of
energy conservation, environmental protection, science and
technology research, and the development of eco-friendly equipment.
Beijing FlyingGlob Environmental Technology Limited Company is an
energy consumption enterprise in the field of energy saving,
environment protection, science and technology research and
development, and energy-saving equipment production. It
relates to the manufacturing, processing and trading business in
the above-mentioned field.
FlyingGlob has been in the environmental protection field since
2006. The company has always focused on innovation in the field of
energy efficiency, improvement and optimization of
energy-saving equipment production, and environmental protection
technology development. Beijing FlyingGlob is a professional
solution provider in the field of green technology. Its
products are distributed in 20 provinces and cities nationwide in
China, involving waste water
treatment, electric power generation, petrochemical, metallurgy,
steel, coal, chemical, and pharmaceutical processing. Beijing
FlyingGlob has participated in the implementation of national
projects since 2013, including introduction of high
technology motor vehicle exhaust emission technologies to improve
air quality.
SaviCorp® is an innovative automotive
technology company that licenses, manufactures, distributes and
services an array of patented technologies and products that reduce
harmful emissions and improve fuel efficiency. The company, an
evolution of more than twenty years of automotive engine emissions
testing, materials research and development, was formed to create,
support and license its patented supplementary vehicle Emissions
Reduction Technologies (ERT). Using proprietary methods and
processes, the company's flagship DynoValve® system protects the
environment, reduces an engine's carbon footprint, increases gas
mileage and improves engine performance, resulting in dramatic
savings in both fuel and oil.
For more information regarding SaviCorp®, its agreement with
Beijing FlyingGlob Environmental Technology Limited Company and its
products or for information about its current and future product
offerings, please visit http://www.savicorp.com/.
Forward-Looking Statement Disclosure
This press release contains forward-looking statements, within
the meaning of Section 21E of the Securities Exchange Act of 1934
that reflect SaviCorp's current expectations about its future
results, performance, prospects and opportunities, including
statements regarding the potential results of the fulfillment of
the terms and conditions of the distribution agreement. SaviCorp
has no assurance that FlyingGlob will be successful in its
marketing and sales efforts, or that it will meet its contractual
obligations for making and funding the minimum purchase
requirements. Where possible, SaviCorp has tried to identify
these forward-looking statements by using words such as
"anticipates", "believes", "intends", or similar expressions. These
statements are subject to a number of risks, uncertainties and
other factors that could cause actual events or results in future
periods to differ materially from what is expressed in, or implied
by, these statements. Although we believe that the expectations and
assumptions upon which they are based are reasonable, we can give
no assurance that such expectations and assumptions will prove to
have been correct. Many factors could cause actual results to
differ materially from our forward-looking statements.
SaviCorp assumes no obligation to update or revise any
forward-looking statements as a result of new information, future
events, and changes in circumstances or for any other reason.
Please direct inquiries to:
SaviCorp, Inc., formerly
known as Savi Media Group, Inc.
Toll Free: 877-611-7284
Local: 714-312-5352
SOURCE SaviCorp