PHILADELPHIA, PA--(Marketwired - Sep 16, 2013) - Early production stage hydrogen generation company AlumiFuel Power Corporation (OTCQB: AFPW) (the "Company") announced today that the extensive due diligence process involving the prospective merger transaction with Genport, srl of Italy has now been completed, and the parties are finalizing the definitive Agreement. (See AFPW news release of July 16, 2013).
The two companies are working intensely and diligently to sort out complex international contractual issues and arrive at the optimal transaction structure. The Agreement requires modification to become a Stock Purchase Agreement rather than a Merger Agreement, among other things to better comply with Italian law. The end result essentially would be the acquisition of Genport by Novofuel, Inc., a U.S. based company. Genport would become a wholly owned subsidiary of Novofuel, with Genport shareholders and AFPW shareholders owning Novofuel, and Novofuel owning 100% of Genport, srl shares. The two parties are now amending the Agreement accordingly, and are in the process of finalizing it for signature. The amount of capital to be raised, and the most cost effective options for raising the capital in the public or private equity market are being deliberated. In this regard, the Company is actively engaged in ongoing discussions with a variety of potential investors and financial sponsors who are anxiously awaiting finalization of the transaction structure. Both companies remain extremely bullish on completing the deal.
Following the closing of the transaction, Novofuel would have operations in the U.S. and Italy, and be in a position to pursue and capture backup and portable power applications and business opportunities in the U.S., Europe, and other regions -- multi-billion dollar markets. The parties believe that the synergistic combination of Genport's hybrid fuel cells, solar power systems, and lithium-ion battery packs, along with AlumiFuel Power's hydrogen generation systems, can bring powerful alternative energy capabilities to the global marketplace.
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 solar cell technologies 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, Texas Instruments, Arbin Instruments, four European companies, and Purdue University.