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VANCOUVER, British Columbia, April 22, 2022 (GLOBE NEWSWIRE) — Alkaline Fuel Cell Power Corp. (NEO: PWWR) (Frankfurt: 77R, WKN: A3CTYF) (“AFCP” or the “Company”)a company engaged in the development and production of alkaline fuel cell heat and power systems for residential, industrial and commercial markets worldwide, is pleased to announce that it has completed the acquisition (the “Acquisition“) of the combined heat and power (CHP) generation business (the “CHP Business“) of AI Renewable 2018-I Limited Partnership, AI Renewable 2020-I Limited Partnership and 2191 Yonge Ltd. (collectively, “AI“), pursuant to the definitive agreements, previously announced on March 4, 2022.
AI uses a clean and renewable single fuel source energy technology that generates both electricity and heat. The stable and efficient energy production results in cost savings to the customer and a reduction in greenhouse gas emissions.
Upon closing of the Acquisition, the CHP Business will provide the Company with immediate recurring, long term gross operating income from a current active account. The CHP Business also has a pipeline of projects, that once secured, will provide additional sources of gross operating income Securing the pipeline of projects remain subject to mutual agreement with the potential accounts.
AI’s high efficiency CHP system provides reliable, sustainable and efficient, on-site energy 24/7. It can be adapted to not only residential but commercial and industrial customers. Furthermore, the Company has identified technology that will allow them to transition AI’s current CHP systems to utilize hydrogen and the AFCP fuel cells allowing for AFCP to grow exponentially while generating revenue.
AI’s pipeline consists of over 30 potential CHP projects at various stages of development ranging from proposals, letters of intent and one power purchase agreement ready to begin the engineering, procurement and construction (EPC) phase. The estimated capital investment to bring the pipeline of potential CHP systems into commercial operation within the next 24-36 months is estimated at $50,000,000. It is estimated that, based on the CHP system currently in commercial operation, when all of the potential CHP systems are in commercial operation, potential gross revenue could be up to approximately $16.61 million, potential EBITDA could be up to approximately $7.68 million and potential net income up to approximately $1.64 million. These estimates are forward-looking and are subject to the assumptions provided in forward-looking disclaimer below.
Pursuant to the terms of the definitive agreements, the Company paid a purchase price (the “Purchase Price“) consisting of 22,575,758 common shares of Alkaline Fuel Cell Power Corp. (the “Consideration Shares“) and $3,000,000 in cash consideration. In connection with the execution of the definitive agreement, the Company advanced a $2,000,000 loan to the vendors, which was applied against the cash consideration on closing. The remaining $1,000,000 cash payment shall be paid no later than January 2, 2023.
Early Warning Disclosure
The Consideration Shares were issued to AI Renewable GP 2020 Ltd. (“AI GP 2020“), resulting in AI GP 2020 becoming an insider of the Company by virtue of owning 11.9% of the issued and outstanding shares in the capital of the Company post-Acquisition. Prior to closing of the …
Full story available on Benzinga.com
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