Propell will invest $1.2 million for a 60% joint venture
interest and Technovita will invest $800,000 for 40%. The JV
will exclusively sublicense rights to the plasma pulse technology
licensed by each of Novas and Technovita in the United States and
Canada, respectively, from Novas Energy Group Limited.
The JV is intended to provide Propell the following
benefits:
Access to Technovita's experienced
team. Technovita has a team of 14 individuals
including a Russian geologist with over 30 years of experience, a
nuclear engineer with plasma physics and wave theory expertise, a
wireline and workover service provider for over 30 years, as well
as individuals experienced with business development and
commercialization of new technologies and large service
companies.
Creation of a consolidated global brand is
expected to expand Propell's geographic reach beyond the United
States and into Canada.
Low risk for Propell. In addition to the
capital invested by Technovita in the JV, Propell will control the
JV's board of directors and possess the right to terminate if
certain revenue milestones are not met while retaining certain
rights in the United States and Canada.
"This partnership allows us to access Technovita's development,
servicing and sales infrastructure, which we expect to expedite
U.S. market expansion," commented John Huemoeller II, Propell
CEO. "Further, with their Canadian Plasma Pulse license, it
provides a centralized sales and service effort to the U.S., and
Canada.
Pursuant to the terms of the Joint Venture's operating
agreement, if certain milestones are not met, Propell has the right
under certain circumstances to in some cases terminate the
operating agreement and under other circumstances increase its
ownership interest in the Joint Venture.
Propell's Board of Directors has unanimously determined that the
Joint Venture and sublicense is in the best interests of Propell
and its shareholders. Propell has received approval of the Joint
Venture and sublicense from one shareholder that holds in excess of
50% of the outstanding voting securities of Propell. The
sublicense and Joint Venture will be effective twenty days after
the mailing of the Schedule 14C that Propell filed with the
Securities and Exchange Commission today.
The transaction is subject to closing conditions, including the
filing of a Schedule 14C with the Securities and Exchange
Commission and the passing of the requisite waiting period.
ABOUT PROPELL TECHNOLOGIES GROUP
Propell Technologies Group, Inc. (http://www.propell.com/), through its wholly
owned subsidiary Novas Energy USA, is the exclusive U.S. licensee
of the Plasma Pulse enhanced oil recovery (EOR) well treatment that
improves well production cost effectively and without acidization,
hydrofracking or other chemicals. It develops and commercializes
treatment and stimulation of oil wells to meaningfully improve
production and enhance the recovery of oil and gas in existing
wells.
SAFE HARBOR
This press release includes forward-looking statements of our
current expectations and projections about future events. In some
cases forward-looking statements can be identified by terminology
such as "may," "should," "potential," "continue," "expects,"
"anticipates," "intends," "plans," "believes," and similar
expressions. These statements are based upon current beliefs,
expectations and assumptions and are subject to a number of risks
and uncertainties, many of which are difficult to predict and
include statements regarding future acquisitions, corporate growth
strategy, future application of our technology, and results to be
derived from the use of that technology. The forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those set forth or implied
by any forward-looking statements. Important factors that could
cause actual results to differ materially from those reflected in
our forward-looking statements include, among others, our ability
to find suitable acquisitions, fuel our growth and the other
factors described in our on Form 10-K for the year ended December
31, 2014, and any other filings we may make with the SEC. The
information in this press release is provided only as of the date
written, and we undertake no obligation to update any
forward-looking statements contained in this press release on
account of new information, future events, or otherwise, except as
required by law.
Caution With Respect To Forward-Looking
Statements
The information in this news release includes certain
"forward-looking statements". All statements in this news release,
other than statements of historical fact, including, without
limitation, the benefits to be derived from the Joint Venture.
There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from statements in this news release regarding our
intentions include, without limitation, risks and uncertainties
regarding the ability of the Joint Venture to successfully
implement its business strategy: and other risks and uncertainties
disclosed in the section entitled "Risk Factors" contained in our
Annual Report on Form 10-K for the year ended December 31, 20143.
Investors are cautioned that forward-looking statements are not
guarantees of future performance and, accordingly, investors should
not put undue reliance on forward-looking statements. Any
forward-looking statement made by us in this news release is based
only on information currently available to us and speaks only as of
the date on which it is made.
Additional Information and Where to Find It
SHAREHOLDERS ARE ADVISED TO READ THE SCHEDULE 14C that was filed
with the Securities and Exchange Commission on July 28, 2015 and
the operating agreement and sublicense included as exhibits to the
Schedule 14C.