NovoFuel and Genport Sign Agreement to Combine Assets and Operations, and Commence Capital Raising Activity
Marketwired
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
