NovoFuel and Genport Sign Agreement to Combine Assets and Operations, and Commence Capital Raising Activity
November 04 2013 - 7:00AM
Marketwired
NovoFuel and Genport Sign Agreement to Combine Assets and
Operations, and Commence Capital Raising Activity
PHILADELPHIA, PA--(Marketwired - Nov 4, 2013) - Early production
stage hydrogen generation company AlumiFuel Power Corporation
(OTCQB: AFPW) (the "Company"), announced today that its wholly
owned subsidiary, NovoFuel, Inc., has signed an agreement with
Genport, srl of Italy to combine and integrate their technologies,
assets and operations into NovoFuel.(See AFPW news release of Sep
16, 2013).
A lengthy due diligence process convinced both parties that the
prospective business combination would indeed result in a powerful
new multinational alternative energy corporation with unique
capabilities and opportunities. Genport and NovoFuel explored
various transaction structures and vehicles for combining their
businesses and operations. NovoFuel's objective is to seek a
private financing of up to $4,500,000 to support working capital
and development efforts to integrate, and roll out advanced
portable and backup power products in response to growing global
demands. With the signing of this agreement, efforts are already
underway by NovoFuel and its banking advisor to evaluate a variety
of private and strategic financing options. The terms of the
agreement are contingent upon closing of the financing. The parties
believe that the synergistic combination of Genport's hybrid fuel
cells, solar power systems, and lithium-ion battery packs, along
with NovoFuel Power's AlumiFuel hydrogen generation systems, can
bring powerful alternative energy capabilities to the global
marketplace with multi-billion dollar target markets. The above
terms, conditions, and market focus are embodied in a Memorandum of
Agreement, signed on October 30, 2013.
On closing of a capital investment, NovoFuel common shares are
to be allocated to Genport shareholders in exchange for 100% of
Genport shares. Although Genport would then be a wholly-owned
subsidiary of NovoFuel, Genport, srl would retain its status as an
Italian company under Italian law. Following the closing of the
transaction, NovoFuel will have operations in The U.S. and
Italy.
The same AlumiFuel
hydrogen generation technology used for lift gas applications, such
as the PBIS-2000 being field tested by the USAF Special Operations
Command (see AFPW news release of Sep 18, 2013), can be applied to
backup and hybrid power generation. The large ($6 billion+) and
growing worldwide back-up and hybrid generation power market,
traditionally served by lead-acid batteries and gasoline or diesel
generators, is increasingly adopting hydrogen PEM fuel cell systems
combined with lithium-ion batteries to replace these earlier
technologies.
All of the U.S.
wireless Telecom carriers have begun installing fuel cell-based
backup power systems, and NovoFuel is in discussions with key
players in this market about applying the combination of AlumiFuel
and Genport technologies. One large carrier has expressed keen
interest in the AlumiFuel cartridge-based technology as a superior
hydrogen generation and storage solution for feeding fuel cells
that back up their 5kW rooftop cell towers. (See AFPW news release
of May 30, 2013).
Genport's product
sales to date have largely focused on its world class lithium-ion
battery packs for highway vehicle recognition systems and handheld
radios in Europe and Genport is also using its unique G300 a 400W
Hybrid Fuel Cell System as the stepping stone for developing a
larger 5kW hybrid fuel cell integrated with 6,5 kW modular lithium
battery packs to meet global demands for reliable, "clean" hybrid
power, including off-grid applications. In this regard, Genport
recently was selected to receive an $800,000 award from a European
consortium to develop a prototype 5kW fuel cell unit. With this
award, NovoFuel already has a head start in the development of a
5kW backup power unit using Genport's fuel cells, lithium batteries
and the AlumiFuel hydrogen generation system.
About Genport,srl
(www.genport.it) Genport srl is an advanced power solutions company
based near Milan, Italy. Genport is focused on providing clean,
safe, reliable and high performance portable power sources for
medical, defense, emergency, telecommunications, and industrial
applications. Genport's solutions are designed to store and
generate electrical energy anytime, anywhere. Genport combines
solid hydrogen PEM fuel cell, lithium ion battery and renewable
energy systems to provide a constant, reliable source of power;
maximize power and energy density; eliminate noise, emissions and
operate in extreme environmental conditions. Genport/GNA's
technology partners include Milan Polytechnic, VTT (Finland), Texas
Instruments, Linear Technologies, Arbin Instruments, four European
companies, and Purdue University.
About AlumiFuel Power
Corporation AlumiFuel Power Corporation, through its
wholly-owned subsidiary, NovoFuel Power, is an early production
stage alternative energy company that generates hydrogen gas and
heat through the chemical reaction of aluminum, water, and
proprietary additives. This technology is ideally suited for
multiple applications requiring on-site, on-demand fuel sources,
serving National Security and commercial customers. The Company's
hydrogen generation feeds fuel cells for backup and portable power,
provides lift gas for weather balloons, and can replace costly,
hard-to-handle and high pressure K-Cylinders. Its hydrogen/heat
output is also being designed and developed to power fuel
cell-based and turbine-based undersea propulsion and auxiliary
power systems. The Company has significant differentiators in
performance, adaptability, safety and cost-effectiveness in its
target market applications, with no external power required and no
toxic chemicals or by-products
Safe Harbor for
Forward-looking Statements This news release may contain
forward-looking statements that are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. While these statements are made to convey to the public
the company's progress, business opportunities and growth
prospects, they are based on management's current beliefs and
assumptions as to future events. However, since the company's
operations and business prospects are always subject to risk and
uncertainties, the forward-looking events and circumstances
discussed in this news release might not occur, and actual results
could differ materially from those described, anticipated or
implied. For a more complete discussion of such risks and
uncertainties, please refer to the company's filings with the
Securities and Exchange Commissio
CONTACTS:
AlumiFuel Power Investor Relations: AlumiFuel Power Corporation
Thomas B. Olson Corporate Secretary 303-796-8940 Genport srl Via
Lecco, 61 20871 Vimercate (MB) - Italy Email Contact +39 039 639
6500 Technical Information & Marketing: Email Contact
610-660-7775 Genport North America Corp. 1281 Win Hentschel Blvd.
West Lafayette, IN 47906 Email Contact 765-237-3393
AlumiFuel Power (CE) (USOTC:AFPW)
Historical Stock Chart
From Apr 2024 to May 2024
AlumiFuel Power (CE) (USOTC:AFPW)
Historical Stock Chart
From May 2023 to May 2024