PHILADELPHIA, PA--(Marketwire - Feb 6, 2013) - Early production stage hydrogen generation company AlumiFuel Power Corporation (OTCBB: AFPW) (the "Company"), announced today that it has signed a Term Sheet with Genport, srl of Italy, which would merge its wholly-owned Philadelphia-based operating subsidiary, AlumiFuel Power Technologies, Inc., (APTI) and Genport into a new U.S. corporate entity, NovoFuel, Inc. This initiative is the result of continuing Joint Venture discussions between the parties, as reported in the AFPW news release of November 28, 2012. This term sheet will be the basis for, and the parties are moving forward toward completion of, a definitive agreement through which both parties would own 50% of NovoFuel before any future financings.
The merger would combine and integrate the synergistic technologies, Intellectual Property, products, revenues, engineering staffs, manufacturing operations, marketing, sales and services activities of both companies, including a new lab facility in the Philadelphia area. The focus of NovoFuel would be to pursue and capture backup and portable power applications and business opportunities in the U.S., Europe, and other market areas -- multi-billion dollar markets. The new entity would pursue the engineering development of an integrated 5kW backup power system for telecom facilities.
NovoFuel would encompass the following capabilities of both companies: (1) APTI's AlumiFuel powder and cartridge-based hydrogen generation for fuel cell power, weather balloon lift gas and Unmanned Undersea Vehicle power; and (2) Genport/GNA's fuel cell power systems, hydrogen generation and storage systems, solar cells and lithium-ion battery packs. Genport's current flagship product is the G300 Hybrid Fuel Cell, a European certified 400 Watt system that can take energy inputs from hydrogen, solar panels and lithium-ion battery packs and deliver electricity for a variety of applications including military, emergency telecommunications, PCs, battery charging, electro-medical devices, and auxiliary power.
The next steps in the merger process include executing the definitive Merger Agreement, completing the capital raising effort already underway by Colebrooke Capital Ventures of New York City, and converting NovoFuel into a public entity at the appropriate time.
AlumiFuel Power Technologies' President & CEO, Mr. David Cade, said: "NovoFuel would be a true alternative energy company with global reach, and we are excited about introducing customers around the world to the advanced energy capabilities of this new company."
Genport's Chief Executive Officer, Mr. Paolo Fracas, said: "NovoFuel will offer significant new power solutions for portable electronics, backup power, and micro-grid users. The introduction of our new multi-technology, extended run-time fuel cells for various critical mission applications will offer tremendous new market opportunities for us."
Completion of this transaction is subject to, among other things, further due diligence by the parties, negotiation and execution of definitive agreements, and any board of director and/or stockholder approvals that may be necessary.
About AlumiFuel Power Corporation (www.alumifuelpowercorp.com)
AlumiFuel Power Corporation, operating through its wholly owned subsidiary, AlumiFuel Power Technologies, Inc., is an early production stage alternative energy company that generates hydrogen gas and steam/heat through the chemical reaction of aluminum powder, 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 feeds fuel cells for portable and back-up power; fills inflatable devices such as weather balloons; can replace costly, hard-to-handle and high pressure K-Cylinders; and provides fuel for flameless heater applications. Its hydrogen/heat output is also being designed and developed to drive fuel cell-based and turbine-based undersea propulsion systems 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
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.
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 Commission.